CITY CHIC IN PRICES ALERT
WOMEN’S fashion and apparel retailer City Chic has warned that closed ports in China, shipping delays and higher prices are now playing through the global retail sector.
In a trading update to the market that showed improving sales in the second half for the plus-size women’s clothing specialist, City Chic revealed it was reviewing prices with a view to increases in some categories.
Chief executive Phil Ryan said he was glad the retailer had decided to order early and at high volumes to avoid shortages at its stores.
City Chic said it had continued to build up its inventory of clothes and fashion items due to stretched supply chains and disruptions to global trade, with it warning of “ongoing and increasing global supply chain disruptions”.
It said many ports in China were closed due to the country’s Covid-zero policy and that shipping delays had increased this half.
Meanwhile, shoppers have returned to stores after fears around the Omicron strain of Covid came and went, with City Chic reporting rising foot traffic at its outlets since March, a bumper Easter, and people buying new outfits to celebrate social occasions such as weddings once again.
City Chic said it had recorded improving sales momentum at its stores and booming online sales.
The retailer is targeting the plus-sized women’s market that globally is worth about $US180bn ($250bn) a year. This year it gained entry to the $US45bn European plus-sized fashion market with the acquisition of retailer Navabi.
Like many retailers, it suffered from a collapse in sales at its bricks-and-mortar stores during the pandemic due to lockdowns and consumers staying at home, but since the start of the year it had witnessed a slow but steady recovery in store sales, matched by elevated online shopping.
City Chic said total second-half sales to date were up 25 per cent on the previous corresponding period. It said for the 17 trading weeks from December 27 to April 24 it booked sales growth in its US market of 47 per cent, while in Australia sales were above last year, with online growth of 13 per cent.