Monday, November 20, 2017

River Island‘s profits jump 70% following kidswear launch

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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.”