Arcadia Group has posted a seven per cent decline in UK revenues as the loss of hundreds of BHS concessions and the dwindling fashion sector eat into profits.
In the 12 months to August 2016, the retail company’s flagship brand Topshop saw revenues drop by nearly two per cent in the UK, with its international arm falling a further six per cent despite ambitious expansion.
According to the latest Companies House accounts released yesterday, Arcadia Group’s parent company Taveta Investments saw UK revenues drop from £2.2 billion in 2015 to £1.7 billion last year, £370 million of which was related to losses from discontinued operations like BHS.
Following the demise of BHS, which happened 13 months after year after Sir Philip Green sold it for £1, 307 concessions for the group’s other brands like Dorothy Perkins and Burton disappeared.
The group attributed “value conscious” shoppers along with increasingly challenging conditions to its poor performance over 2016.
In light of its declining sales, Green is understood to have given consultancy company McKinsey a broad remit to review strategy at Topshop.