What went wrong at Superdry?
Don’t be fooled by the Japanese characters emblazoned on its hoodies – Superdry was always a thoroughly British success story.
From a small stall in Cheltenham market, it went on to become a truly global phenomenon and a commercial success.
But 16 years after its founding, the firm started by James Holder and Julian Dunkerton is on the decline.
Its shares have lost more than 70% over the past year. In December it issued a profit warning, and last week the company announced it would cut up to 200 jobs.
Now the blame game is playing out in public.
‘Misguided strategy’
The fallout began when Mr Dunkerton stepped down from the firm’s board, in March of 2018. At the time, he departed quietly enough, citing “other demands on his time”.
But as Superdry’s fortunes began to worsen, the multi-millionaire found his voice.
- Superdry tells co-founder Julian Dunkerton he’s not welcome back
- Superdry warns worse to come as profits plunge
- Superdry in profit warning after heatwave hits sales
He criticised the retailer’s “misguided strategy” – including a reduction in stock both in stores and online – which he claimed he had always predicted would fail miserably.
Instead, he wanted Superdry to focus more on the jackets and hoodies that made it famous, and offer a far wider range of variations on the web.
Mr Dunkerton also dismissed Superdry’s caution late last year that it was losing business due a prolonged spell of good weather in many of its key markets, causing customers to delay purchases of warmer clothing. Rival brands, he argued, had fared better, while facing similar economic conditions.
Yet as Julie Palmer, a partner at consultancy firm Begbies Traynor points out, falling profits in retail “has not been a problem exclusively experienced by Superdry”.
Big chains, she argues, “are no longer in a position to bend the will of the customer to their own styles”.
Click here to read more (Source: BBC News)