eCommerce sales by Superdry have increased by 100% in the last few weeks, in comparison to its usual levels prior to the coronavirus pandemic. The clothing retailer has stated that the revenue coming in from its online platform has made up for around one-third of its lost store sales. All of its physical stores in Europe, the USA, and UK closed back in March due to Corona-virus lockdown restrictions.
Published today in a pre-close trading update, Superdry announced its online sales have nearly doubled to about £3.7 million per week during the last four weeks. It has had to make the shift from full closure to only online sales as well as improve their product and imagery, renewed social media campaigns, and has extended the end of their season sale.
In the period before the Covid-19 crisis Superdry’s online revenue was much different from the way it is now. Most of eCommerce’s revenues have been declining by 8.2% in FY20. Despite this, there have been improved performances nearing the end of the financial year, showing an 18.8% year after year growth in the six weeks leading to March 7, adding to a 6.8% rise during Q4 of FY20.
The overall performance recorded by Superdry has been bleak, this is seen by their 22.9% drop in-store revenue in FY20, and a reduction of 57.0% in Q4. as well as their wholesale revenues dropping by 20.1% in FY20.
Julian Dunkerton, Superdry’s CEO, had this to say: “As with all retailers, the Covid-19 pandemic has caused major disruption to our business operations and supply chain. I am pleased with the accelerating shift in sales to online, and we’ve seen a particularly good performance from our women’s ranges which, for the first time ever, are accounting for around half our sales. Clearly however, the closure of all our stores has had a major impact. We are taking all practical steps to preserve cash, looking carefully at all areas of the business, and working to secure additional liquidity and financial flexibility.”
Dunkertons plans to grow the business have been seriously disrupted by the Corona-virus pandemic and he hopes to be able to resume his plans once lockdown restrictions are lifted.
Retail analyst, Pippa Stephens at GlobalData added: “It should make its designs more trend focussed, to reduce its negative perceptions, and regain greater desirability among younger shoppers. Superdry is also facing tough competition from fast-fashion players like boohoo.com and ASOS, with its prices appearing expensive in comparison, so it must better justify its price points through brand exclusives and celebrity endorsements.”
Like other retailers during this crisis the clothes company Superdry, has been badly impacted. However through their online sales revenue, their hit is not as bad.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter, and for over a decade has been the Co-Founder of eMerchantBroker, the highest-rated high risk credit card processing provider in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.