124 New Look stores at risk as sales slump

But Primark bucks High St gloom

NEW Look is preparing to axe as many as 124 stores as sales continue to plunge.

The fashion retailer said 85 have already closed but more may follow. It previously planned to shut only 60 stores.

New Look’s revenues tumbled 4.2pc to £656.9m in the 26 weeks to September 22, while samestore sales dropped 3.7pc.

But it was not all doom and gloom on the High Street as rival Primark reported a 1.2pc rise in sales in the UK amid bumper demand for items including a rainbow striped dress costing £20 ( pictured right).

New Look has been struggling to get the business back on track after it tried to target younger shoppers by selling edgier clothing ranges. But the move backfired, alienating loyal customers.

The 49-year-old retailer has since been forced to lower prices, overhaul its clothing range and shut stores. New Look is also shutting its business in China due to poor sales, with 120 stores closed.

New Look executive chairman Alistair McGeorge, who took over the day to day running of the business last year, said: ‘Our product went too young and too expensive so we’ve adjusted that to reflect our core customers and we’ve improved the pricing.’

New Look’s overhaul paid some dividends to see it return to a profit during the period. The group reported an underlying operating profit of £22.2m compared with a £10.4m loss a year earlier. Danish charm bracelet maker Pandora added to the High Street gloom, slashing its sales forecast for the second quarter in a row. It has ditched long-term ambitions to grow revenues between 7pc and 10pc as it battles to attract shoppers. But Primark, the low- cost fashion chain, recorded a solid uptick in sales last year as it continues to open stores.

Primark, which is owned by Associated British Foods (ABF), posted a 1.2pc increase in UK sales in the year to September 15.

But sales across the Primark business, which includes stores in Europe and the US as well as the UK, fell 2.1pc.

It is planning to open 1m sq ft of store space this year, with shops planned for Bordeaux, Brussels, Utrecht, Milton Keynes and its first in Slovenia.

George Weston, chief executive of ABF, said the retailer continued to do well because it invested heavily in its stores.

He added that Primark had no plans to start selling its products online, saying it would be too expensive.

Group revenues at ABF nudged up 1pc to £15.6bn last year. Profits also climbed, by 5pc to £1.4m.