Sales at River Island dropped from £879.5 million to £600.5 million for the year to 26th December ’20, resulting in a pre-tax loss of £51.5 million. Online sales grew to represent around 50 per cent of sales with lockdowns having decimated demand from stores. The business had claimed £20m in furlough support from the government and £25 million in business rates relief. “The world of retail was changing at an exponential rate well before the pandemic struck and these trends have only accelerated since”, said CEO Will Kernan. The company said that it would continue with its focus on online channels as well as cutting costs where possible whilst introducing new ranges. It also said that it had experienced a strong and encouraging start to the year before Covid had impacted it.
Kernan added: “I am pleased to say that, today, our business is in better shape than it was pre-pandemic: our differentiated product ranges and pricing have huge appeal to a wide demographic, there is more buzz around the brand than there has been in many years, we are operating far more efficiently, and our digital offer goes from strength to strength.”
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