Online fashion retailer Pink Boutique has revealed how it pivoted the business in lockdown, switching from luxury dresses to loungewear to keep customers shopping through the pandemic.
Accounts have been published for the year ended February 29, a year of consolidation and change at the firm which business owner Julie Blackie launched with her daughter Alice Hall, having each put in 拢45 to buy its first six dresses.
During the course of the year, co-founder Mrs Hall left the business to set up her own business group, ahead of the coronavirus crisis which prompted a review of clothing lines at the Newburn based business.
The accounts reveal a fall in turnover from 拢14.1m to 拢13.9m, while operating profit also fell from 拢2.09m to 拢1.26m.
In the report accompanying the accounts Mrs Blackie said it had been a year of further consolidation for the business.
She said: 鈥淭he company鈥檚 topline web sales fell by 2% reflecting the tightening in the fashion market.
鈥淭his also impacted on the cost of marketing and ultimately profitability which dropped by 37%. The fast fashion market continues to be highly disrupted with the impact of the pandemic increasing the likelihood of further business failures and, as a result, consolidation is expected in the coming 12 months.
鈥淎gainst this backdrop and with the market beginning to recover, the business has identified opportunities for growth. The directors believe the business is on a sound financial base and is well positioned to take advantage of future growth opportunities.鈥
Mrs Hall鈥檚 departure from the business coincided with the appointment of new CEO David Quinn, who has helped the firm to diversify, having spent 20 years with Fenwick as well as time as a consultant with large retail chains in Dubai.
After the accounts were published Mr Quinn said: 鈥淭his has certainly been a challenging time but we acted quickly, reducing costs, utilising the Government furlough scheme and limiting our stock intake. It has left us in a strong position and we are well placed to react as things begin to open up.
鈥淚nevitably, the demand for occasion wear and party dresses all but disappeared during lockdown but we did see an increase in leisure and casualwear and, where possible, we focussed on that. Volumes are still depressed but we are seeing green shoots and, importantly, supply is starting to open back up.
鈥淚t is a challenge for suppliers with the volatility in the exchange rates and additional air freight costs as manufacturers hasten the delivery of stock, delayed in factories. We will always keep our prices sharp but we have been able to help with the cashflow of our supply partners by moving to expedited payment terms, often immediate, we recognise that we are all in this together.
鈥淲e are operating with a leaner team, with some colleagues still on furlough but we are now starting to launch our Autumn/Winter collections and we couldn鈥檛 be more excited.鈥
