Struggling Somerset bag maker Mulberry has 鈥渘eglected to connect鈥 with British customers in recent years and plans to sell more in the 海角视频, rather than China, to make the company profitable again.
Chief executive Andrea Baldo told the PA news agency the company had 鈥渓ost so much business鈥 in Britain in recent years that there was 鈥渁 huge space鈥 for the company to grow.
Founded in 1971, Chilcompton-based Mulberry is most famous for its luxury leather handbags. But it has seen profits nosedive of late, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company.
Mr Baldo said the company would focus less on China and close 12 stores across its Asian estate while aiming to open more shops in 海角视频 cities in future. It will also re-enter the wholesale and outlet sales markets, including by striking new deals to sell its items at John Lewis and Flannels.
Mulberry has no presence in Birmingham or Liverpool, he said, and it will look to expand in those cities in future.
The 海角视频 expansion comes after retailers such as Marks & Spencer have warned that rising company taxes and falling consumer sentiment could hit their home market.
While Mr Baldo admitted those factors are 鈥渁 challenge鈥, he added: 鈥淲ith the right product, distribution and communication, we are able to take advantage (of the 海角视频 market) no matter where the economic conditions are.鈥
Mr Baldo, who joined last year from luxury brand Ganni, wants the company to focus on its 鈥淏ritishness鈥 and 鈥渃ultural relevance鈥 and simplify the business to counter plunging profits.
He laid out plans to cut costs by a quarter compared with the last financial year, following a period of 鈥渟uboptimal鈥 performance. Mr Baldo also said Mulberry will look to expand in the US.
The company made nearly one-fifth less in revenue over the key Christmas period than the previous year, blaming a 鈥渃hallenging鈥 business environment.
That was even worse in Asia, where sales slumped by 28% compared with the festive period in 2023. In Europe and the US, by contrast, sales grew 11% year-on-year.
Mr Baldo said: 鈥淲e need to get back to where we came from and return to the spirit of Mulberry.鈥 He added that for the company to succeed 鈥渢he business model needs to be simplified".
Mulberry already announced plans to slash roughly 85 jobs, about one quarter of its workforce, before Christmas. The turnaround plan comes after loss-making Burberry also said it would focus more on its British history to make more sales.
Meanwhile, Mulberry has also hired a new finance head, Billie O鈥機onnor, a former Marks & Spencer and Selfridges executive.
Mr Baldo added: 鈥淏illie has a wealth of experience working in the consumer retail space and has spent time leading finance teams through turnarounds.鈥
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