Stock Control Trims Fashion Retailer Sales

Discount fashion retailer New Look, currently subject to a takeover offer from founder Tom Singh, reports UK like-for-like sales have slipped by 3.6% in the first half.

The UK's third largest women's clothing retailer, which has around 500 shops across the country, says sales have dipped due to tighter control of summer stocks which saw more merchandise sold at full price.

Weymouth-based New Look has been selling a high mix of cut-price fashion items such as skimpy vests, mini-skirts and three-quarter length trousers. The company said total sales in the six months to September 27 rose by 3.6% compared with the same period last year.

It said customer reaction to its new autumn ranges had been encouraging in the five weeks to September 27. Like-for-like sales for the period were ahead of last year with a 1.4% rise.

New retail space is key to New Look's strategy. The company expects to open a net 200,000 square feet of new space in the UK during the year to March 31, around 25,000 square feet ahead of plan.