- Specialty Fashion Group is hoping closures will minimise debts for the new year
- They already have a whopping 1,019 stores established under the group
- Despite the ‘disappointing’ sales in 2017 the online sphere continues to grow
Specialty Fashion Group, which is behind Rivers, Katies, Millers and City Chic, will close 300 stores in a bid to diminish debts.
The retail giant, which currently runs close to 1,019 stores, has endured a six-year slide in earnings and needed to rid themselves of the debt-collecting shops.
Chairwoman Anne McDonald said the company is hoping to get down to 700 stores by 2020, instead of the 1,000 plus they currently run, The Australian Financial Review reports.
Chairwoman Anne McDonald said the company is hoping to get down to 700 stores by 2020
Increased competition and a reduction in sales has been blamed for the store closures
While increased competition and a reduction in sales has been blamed for the change, former CEO Gary Perlstein said online sales were continuing to increase across all brands.
‘We continue to pursue cost management initiatives and business simplification by integrating shared service functions into the brands, Ms McDonald said at the annual shareholders meeting on Tuesday.
‘In the first quarter of the 2018 financial year, we have reduced costs by around $3.6 million through a leaner support office.’
The group said while their year in sales had been ‘disappointing’ it only strengthened their resolve to make the brands more relevant to Australians next year.
The retail giant, which currently runs close to 1,019 stores, has endured a six-year slide in earnings