Sosandar has swung to a loss in the first half of the year despite an increase in revenue as it unveiled plans to expand its omnichannel strategy.
The fashion retailer intends to have a bricks-and-mortar presence as well as bolster its international presence due to “strong interest from third parties overseas”.
Sosandar posted a loss before tax of £1.3m for the six months to September 30, 2023, which it said was driven by “lower revenue following the trialled reduction in promotional activity” in its second quarter.
The business also reported a 6% rise in revenue during the period from £21m to £22.3m.
Sosandar said the business is “perfectly placed” to open stores next spring following the success of its partnerships and the “growing strength” of the brand.
The fashion retailer said it is eyeing “affluent towns with thriving high streets” across the UK for its first-ever stores.
With an eye to international expansion, Sosandar has confirmed partnerships with fashion brands The Iconic in Australia and The Bay in Canada, and confirmed it will begin to sell online with both partners in the fourth quarter of the financial year ending March 31, 2024.
Sosandar also said autumn trading has started “very well” despite unseasonably warm weather in September. It also noted the strength of its partnerships with both Next and M&S during the period.
Looking forward, Sosandar revealed plans to launch its largest occasionwear range ahead of the Christmas period.
Sosandar co-chief executives Ali Hall and Julie Lavington said: “We are extremely excited about the next stage of our growth journey. Our decision to open our own stores is the logical next step as we look to offer our customers more ways to engage and shop with Sosandar.
“We know that the added value of being able to touch and feel our clothes will appeal to our target customers. With a clear rollout plan in place and strict criteria around the location of potential stores, we are confident that our stores will enable us to accelerate our market share and increase the awareness of our brand.
“We are also delighted to announce our first international third-party partners. Over the last few years, we have demonstrated how successful these types of agreements can be, and after an extensive and thorough period of research, we believe that the first partners we have selected are the perfect fit to launch our international growth. We have no doubt that our unique and diverse product range will resonate with customers globally, just as it has done in the UK.
“Whilst we do expect to see a short-term impact as we transition the business to offer less promotional activity, we still expect to be in growth and remain profitable. This strategy is undoubtedly the right course of action to deliver greater profitability and therefore greater value to our shareholders. To be able to capture the 60% of clothing expenditure coming from physical stores is a massive opportunity.
“The Sosandar brand could not be in a stronger position and we have every confidence in our brilliant team to execute successfully as they always have done.
“We believe that the future is very bright as we take the Sosandar brand to more customers across the UK and worldwide, we continue on our journey to become one of the largest womenswear brands globally.”
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