- Don-Alvin Adegeest |
A new report by Ask Traders reveals just how much money 30 of the world’s biggest fashion and retail brands make every second, minute, hour and day globally.
The UK high street has taken a hit over the past 12 months with multiple chains going into administration, restructuring or consolidating. Despite the troubling times, online retailers Boohoo and ASOS are seeing a growth in demand for their fashion offer, resulting in soaring profits. To put this in perspective, the stock market value of Boohoo has overtaken heritage brand Marks & Spencer thanks to a solid Christmas performance. The report also highlights how much money brands like Mothercare lost in comparison.
So which brand generates the highest revenue per second?
ASOS leads the UK’s fast fashion leaders generating over 86 pounds in revenue every second. The online fashion behemoth sold over 348 million units in 2019, meaning they earned 86 pounds per second in revenue and 14.87 pounds in profit. They were closely followed by NBrown (Simply Be and Jackamo) who earn 29 pounds in revenue every second and make just over half of that in profit.
Header 2Zara makes 714 pounds in revenue every second in the UK
Although the UK high street has seen better days there are some fashion brands who seemingly remain untouched by economic challenges. With over 2.9 billion units sold in 2019, Zara comes in the top spot earnings the most revenue over 714 pounds per second and 405 pounds profit which works out at as a 56 percent profit per second.
Comparing this to struggling retailers Debenhams who make 72 pounds revenue each second however only make less than 1 percent of that as profit. Matalan’s results show just 33.71 pounds a second in revenue and 4.75 pounds in profit.
Nigel Frith, senior market analyst at www.asktraders.com said: “The future of retail is online. Amid an ever more digitalised and time-poor society and with e-tailers offering logistical efficiency, consumers are increasingly giving the shops a miss and shopping online. This trend isn’t about to change anytime soon, online shopping offers a frictionless, convenient experience which suits consumers’ busy lives.”
“The retail sector is evolving and in order for high street shops to survive, they must embrace internet shopping with a sophisticated online offering. Next is a great example of a retailer which has adapted to the reality of e-commerce with an impressive online presence. As with every rule, there are exceptions, Primark continues to buck the UK high street doom and gloom trend, as does JD Sports. On the other side of the fence, questions remain over the financial health of Debenhams, which is expected to close some 20 stores this year.”
“Matalan could be another victim waiting in the stalls after its latest results showed that the retailer was not immune to the tough challenges facing the high street. Profits and revenue dropped again in Q3; it could be a case of too little too late with their online presence. Meanwhile, hedge funds are taking positions against Kingfisher and Marks and Spencer, betting against their recovery”.
Article source and graphs: Ask Traders; Main image courtesy ASOS