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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Retail

New Look is latest retailer to fall victim to tough retail market as it swings to half year loss

New Look's new boss has slated previous management for chasing sales too hard with discounts

New Look has become the latest retailer to feel the impact of difficult market conditions as it swung to a half year loss.

UK retailers have come under pressure as consumers feel the pinch of rising inflation. Last week fashion chain Next Plc (LON:NXT) warned that trading had been “extremely volatile” in the lead up to the key Christmas period.

READ: New Look sees no sign of tough UK fashion retail market letting up as first quarter sales fall

New Look has also fallen victim to the tough conditions, reporting an underlying loss of £10.4mln in the six months to September 23, compared to a £59.3mln profit in the same period a year ago.

Like-for-like sales sank 8.6% during the period while total revenues fell by 4.5% to £686mln.

New boss Alistair McGeorge slated previous management for trying to make the high street brand “too young and edgy” in an effort to appeal to younger audiences. He added that they had “chased sales too hard with discounts”.

"Many of our problems are self-inflicted", McGeorge said.

McGeorge was brought back as executive chairman to revive the company, having previously served in the role between 2011 and 2013.

Former chief executive Anders Kristiansen left the retailer in September after nearly five years in the role. His departure followed more than a year of falling sales, which he said reflected a series of product buying mistakes.

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