A restructuring and cost-reduction plan has helped soften the
blow of lower sales and reduced gross margin at Alexandra, the
workwear supplier/cataloguer.
In the 14 months to 31st March 2010, Alexandra generated revenue
of approximately £72 million-down from £74.7 million in
the year to 31st January 2009. According to a company statement,
revenue was “impacted by the economic downturn, which has
resulted in a very challenging and competitive environment with
both existing and potential customers delaying expenditure and
seeking lower prices.” In addition, the strong US dollar
and more lower-margin contracts won last year contributed to a
fall in margin.
Alexandra was partially able to mitigate the impact of lower
revenues by reducing overheads thanks to a “significant
reorganisation” at the firm. During the past year, it
restructured its sales, customer service, and supply chain
elements, including the integration of all its brands-Alexandra,
Prima, and de Baer-under one umbrella, which have contributed to
improved customer retention.
Further, it separated the sales and buying departments into two
teams so that every call could be handled by a staff member with
the right knowledge and expertise, and reorganised departments
into three core sectors-healthcare, corporate clothing and
general workwear-to better deal with the diversity of its product
range. It has also won £2.3 million in new business during
the year so far.
Part of the restructuring also included a refreshing of the
company’s identity using a new logo, strapline, and rebranded
catalogue.
Alexandra worked to strengthen its marketing capabilities with
the unveiling of new branding in April. The new look was
developed by Duttons Design, whose brief was to create “a
look and feel that reflected a more contemporary, confident, and
creative approach, whilst retaining our proud heritage,”
says Alexandra’s Sara Mullis. Whilst the new catalogue won’t be
ready until September, Alexandra distributed a preview edition to
visitors at the Workwear and Corporate Clothing Show in April-the
place where it officially unveiled its new image. The preview
contains information on proposed changes and details on new
additions to the product range.
Going forward, Alexandra says that further initiatives in
relation to training, property, and the group’s supply chain are
to follow and that a planned equity fundraising will help the
group stabilise its position.
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