New Look: Same Old Problems
The fashion industry is notoriously fickle and difficult to predict at the best of times, so for New Look to have got their business strategy quite so wrong is very likely to mean their eventual demise unless a radical turnabout in their fortunes occurs and soon! The company has kept open over 600 high street stores in city centre locations at a time when many consumers are switching to online alternatives for their fix of quick fashion. The store rents and falling sales have helped to add to New Look's staggering debt of over £1.2bn and this highly geared company now faces some very difficult decisions as it starts a belated restructuring programme.
An excellent article to make use of when studying business strategy, gearing and marketing strategy. [Click on image to read full article].