Superdry, the renowned British fashion brand, has announced plans to close eight of its 104 stores across the UK this year. The decision comes as the company grapples with a challenging retail environment, exacerbated by the cost-of-living crisis and poor weather conditions that have negatively impacted retail sales.
Superdry retail strategy to cut business costs
The closures are part of a broader strategy by Superdry to streamline operations and cut costs. However, it’s important to note that these closures are not directly related to the company’s cost-cutting measures revealed earlier in 2023. Instead, they are the result of a decision made by the franchisee who operates these stores under license from Superdry.
Five of the stores slated for closure have already shut their doors since May. These include locations in Stoke On Trent, Ipswich, Luton, Telford, and Lincoln. The Bury St Edmunds store is currently in the process of closing, while the remaining two locations have yet to be disclosed.
Despite these closures, Superdry remains resilient. The company has seen a resurgence in popularity among the TikTok generation, with items such as parachute pants and Afghan coats driving strong demand. This has helped the company bounce back from a loss of almost £37m a year before, posting pre-tax profits of £18m and a nearly 10% increase in sales to £610m in the year to 30 April.
Superdry operates all over the world
Superdry operates through 740 branded stores in 61 countries worldwide, including 241 owned stores across the UK, Republic of Ireland, mainland Europe, and the USA, and 499 franchised and licensed stores. The majority of Superdry’s stores in the UK are operated directly by Superdry, and there are no plans to close any of them at the present time.
The company has been proactive in strengthening its balance sheet, securing £12 million in fresh funding following an equity raise in May. It has also been exploring strategic partnerships, reportedly in talks to outsource its online operations to Canadian e-commerce giant Shopify.
While the closure of these eight stores marks a significant shift for Superdry, it is clear that the company is taking decisive steps to navigate the challenging retail landscape.