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Expert Opinion: French Connection to launch well-needed review

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15 March 2012 | Published by Verdict

Expert opinion

 

15th March 2011

French Connection to launch well-needed review

 

Andrew Stevens, retail analyst, gives his expert opinion:

 

Amid the release of a poor set of results, French Connection has announced a review of itsUKretail division in an attempt to improve on what has been a series of poor performances for the retailer in terms of sales and margin in its core market. 

While the retailer blames its poor margin performance on high input costs, as well as the weakened economy forcing consumers into restricting their spending to more discounted stock, it has recognized that its comparative performance has been disappointing. The retailer is planning revenue growth and renewed profitability by enhancing its ranges – adding a premium womenswear line this spring – and broadening its product offer – launching into homewares this year. In order to address its profitability issues, French Connection has said that it plans to manage its production costs far closer, as well as reducing both sale periods and the levels of markdowns made.

These initiatives will help the retailer in the long run, however it is likely to be a slow process returning the coreUKbusiness to profitability. Efforts from the retailer to protect its brand by restricting the level of markdowns are sensible; however the retailer must ensure it stays close to its core customers, enticing them to spend through fresh and exciting product lines. The next twelve months are likely to be difficult for the retailer, however its debt free position will be of benefit once the economic recovery begins.

 

 

ENDS

 

Notes for editors

 

Andrew Stevensis available for comment.

 

To arrange an interview or for further details regarding this release please contact Kirstin Stocker in the Verdict/Datamonitor press office on email kirstin.stocker@informa.com

 

About Verdict:

Verdict Research is the leading authority on retailing. The firm has privileged access, at the highest level, to key executives working within the top 200 retailers. Its research and publications provide executives working in a wide range of business sectors – retailing, manufacturing, advertising, marketing, professional services, property, finance and the media – with unrivalled independent analysis of the retail sectors, key trends driving each, insight into the major players and forecasts. Verdict Research (www.verdict.co.uk), is a wholly owned subsidiary of Datamonitor.

 

About Datamonitor:

Datamonitor is a premium business information company specialising in industry analysis. It helps over 5,000 of the worlds leading companies, to address complex strategic issues. Through proprietary databases and wealth of expertise, it provides clients with unbiased expert analysis and in-depth forecasts for seven industry sectors: Automotive, Consumer Markets, Energy, Financial Services, Pharmaceuticals and Healthcare, Technology, Transport and Logistics. Datamonitor maintains its headquarters inLondonand has regional offices globally.

 

 

 

- Ends -

Notes to editors
Further Information

More information is available from the Datamonitor Group Media Team. Please contact +44 1483 825 664 or kirstin.stocker@informa.com.

About Verdict

Verdict Research is the leading authority on UK and European retail markets. Our research publications, consultancy services and news bulletins offer unparalleled analysis on a large variety of retail sectors, issues, geographies and demographics.

Verdict is part of the Datamonitor Group.

About Datamonitor

Datamonitor is a leading provider of online database and analysis services for key industry sectors. We help our clients, 5000 of the world's leading companies, to address complex strategic issues. Through our proprietary databases and wealth of expertise, we provide clients with unbiased expert analysis and in-depth forecasts for seven industry sectors: Automotive, Consumer Packaged Goods, Energy, Financial Services, Pharmaceuticals and Healthcare, Technology, Transport and Logistics.

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