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British luxury brand Burberry has seen its sales fall 22 % in the first half of the year. A new strategy should help the fashion retailer win back lost customers, while at the same time millions of pounds of costs will be cut.
‘Burberry Forward’
The sales nosedive is due to disappointing sales in all markets where the brand operates, but especially in Asia. On sales of 1.1 billion pounds (1.3 billion euros), the company posted an operating loss of 53 million pounds (65 million euros). A year earlier, there was still a 223 million pound profit.
CEO Joshua Schulman now wants to take decisive action, launching a new strategic plan called ‘Burberry Forward’. The fashion brand is to refocus more strongly on its traditional strengths, such as coats and scarves, and on winning back customers who appreciate its timeless British style. The retailer will also redesign its shops and optimise e-commerce. A cost-cutting programme should reportedly generate as much as forty million pounds (almost fifty million euros).
However, these are measures that will only bear fruit in the longer term, with a target of returning to turnover of three billion pounds (3.6 billion euros). Expectations for the second half of the year are cautious: the operating loss may not yet be able to be fully recovered.
