Friday, September 22, 2017

River Island’s profits jump 70% following kidswear launch


Profits at River Island grew by nearly 70% last year following the introduction of childrenswear and the growing popularity of m-commerce. 

In April 2014 the high street chain tapped into the £4.6bn kidswear market, launching River Island Mini. Off the back of the new line, profits have risen to £149.1m compared with £88m the year before. 

The fashion retailer, which is a family business, has invested heavily in opening flagship stores across the UK and abroad and in its IT systems, which were to blame for a 10% fall in profits the previous year.  

CEO Ben Lewis is pleased with the results of the investment, revealing a 48% increase in mobile traffic to the River Island website and 32% jump in click and collect sales. 

According to Lewis the fashion retailer is cashing in on consumer’s changing habits, which lean towards shopping on the move 

“We don’t have a target age demographic but we are focused on those who are young in attitude”, he said, adding that the company’s growth overseas demonstrates the global demand for British fashion. 

Commenting on the new living wage legislation, he said: “We believe in paying our employees a fair wage. It’s not that different to the other cost pressures retailers face. It’s not a dramatic thing, it’s coming and we will plan for it.” 





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