Shift from formal doesn’t suit Ted Baker
FASHION chain Ted Baker’s revenues have slumped since lockdown as shoppers shy away from formal clothes.
The retailer suffered a slump in sales to £60.9m for the 11 weeks to July 18, down 55pc on a year earlier amid a global collapse in demand.
Although online sales rose by 35pc with performance better than expected, this was mostly because the company was forced to slash its prices to shift stock. Known for its floral dresses, suits and workwear, Ted Baker had been trying to move away from promotions to protect its profits.
The firm is in the middle of a threeyear turnaround plan under Rachel Osborne, its chief executive, after founder Ray Kelvin was forced out over harassment allegations which he denies.
Revenues, were better than the company feared when the pandemic first hit. The shares rose almost 14pc, or 9.8p, to 80p.
Ted Baker is in the process of axing 660 staff as part of turnaround efforts. It has also ditched some of its suppliers in a bid to save money. Investment has been cut to less than £10m this financial year, but the company will still spend cash on marketing.
Almost all of the retailer’s 560 sites are now open, with 75 branches now back for more than four weeks.
Ms Osborne said the performance had been encouraging but more work must still be done.
Meanwhile, discount chain Matalan also struggled to offset the sales it lost in stores through its website for the 13 weeks to the end of May. Total sales were almost £200m lower than last year at £75.3m.