Bargain hunters help fashion chain New Look boost sales by 10%

Jun 4 2009 By Andrew Jackson

FASHION chain New Look said providing affordable clothing and accessories to cash-strapped customers helped it report a 10% rise in annual earnings to £217.6m.

The Weymouth-based business said like-for-like sales in the UK and Ireland rose by 1.4% in the year to March 28 compared to a 3.4% fall the previous year.

New Look said: "While we recognise that in part we benefit from retail spending shifting towards ’value for money’ brands in response to the squeeze on household finances, the strength of our management team means that we are confident in having great product in-store at the right time, at a great price."

The firm hailed a successful Easter period.

New Look, which is privately-owned, said it had increased market share to 5.4% during the year – and said it expected to continue increasing its market share despite worried about consumer disposable income and confidence in the recession.

New Look, which has a store at the Kingsgate Centre in Huddersfield, said more than 9m women and girls – or 37% of the British female population – bought something from its womenswear ranges in the year. Jewellery and hair accessories were particularly strong sellers, with 4,300 items sold every hour.

New Look, which has 612 stores in the UK and Ireland, opened 33 new outlets in the year, including large shops in Liverpool, Bristol, Glasgow, Braehead and Meadowhall in Sheffield.

It said plans to move its headquarters to London would be completed by December.

The retailer said the decision to move its buying and merchandising functions to the capital was part of it "global ambitions" and would help it attract and retain talented staff. Finance, IT and human resources support functions will continue to operate from Weymouth.