Sosandar, a women’s fashion retailer, reports a significant decrease in sales during the first half of the fiscal year, despite reducing its losses.
- The retailer’s sales fell by 27%, dropping from £22.2 million to £16.2 million compared to the previous year.
- Sosandar opened its first three stores in the UK during this period, marking a strategic expansion effort.
- Collaborations with third-party retailers like Next, M&S, and The Iconic played a role in stabilising performance.
- Despite initial setbacks, the retailer remains optimistic, adjusting its full-year revenue forecast while maintaining profit expectations.
Sosandar has reported a 27% decline in sales for the first half of the fiscal year, with revenue falling to £16.2 million from £22.2 million. Despite this downturn, the company’s efforts to minimise pre-tax losses were successful, reducing losses to £0.7 million from £1.3 million in the same period last year.
A key aspect of Sosandar’s strategy included the opening of its first three physical stores in the UK, located in Marlow, Chelmsford, and Gateshead’s Metrocentre. These openings signify an important shift towards establishing a multichannel retail presence. Future expansion plans are set with a fourth store opening at St David’s shopping centre in Cardiff.
The retailer’s performance was supported by strong partnerships with significant third-party retailers, including Next, M&S, and The Iconic in Australia. Sosandar also expanded its footprint by opening a new store at Arnotts department store in Dublin, which previously only hosted their products online.
Despite the early challenges, trading in October showed improvement with sales outpacing those of the previous year. This positive trend has led Sosandar to remain confident in its full-year profit expectations, although it has revised its revenue forecast downwards by £5 million to £40 million.
Co-chief executives Ali Hall and Julie Lavington expressed optimism, highlighting the positive customer feedback regarding their product range and store environment. They noted the ‘fantastic’ response and increased traffic in areas surrounding their stores, indicating strong customer engagement and brand influence.
Sosandar’s strategic efforts in the face of declining sales demonstrate a calculated approach to achieving long-term growth through multichannel expansion and strategic partnerships.
