As many other retailers are suffering from sales slumps, the opposite is true for Ted Baker, who have reported an increase in sales and profits. Ted Baker is a strong name and the instantly recognisable branding may be a reason they are overcoming the challenges other retailers are experiencing at the moment.
Total sales growth
The total sales growth for Ted Baker has been reported as 4.4% and group sales increased by 16.4% to an overall total of £531 million. The international presence of Ted Baker helped the group to recover from the weak pound and this, combined with online sales, enabled the company to beat the current issues faced by other retailers. Online sales seem to be setting the way for Ted Baker, as it has been announced that this accounts for around a fifth of UK and European sales. The UK sales have definitely accounted for a lot of this growth, particularly through increased tourist footfall; who are taking advantage of the current situation with the weaker pound. Despite the news of increased sales and profits, the share price for Ted Baker has actually dropped.
One of the reasons for the increase in profits for Ted Baker is the ever changing fashion line they offer customers. They have recently introduced a new golfing menswear range and a colour by numbers for women. They are also looking at improving their line of daywear products, which may help to increase profits further in the future. Ted Baker adapt to changes in fashion and listen to the needs of customers, which helps them improve their value and overall profits.
The Ted Baker business model appears to have focused on concessions, which may be one of the reasons they are in such a strong position at the moment. They currently have an astounding 237 concessions throughout the world and 36 standalone shops, with 14 outlets. They are also focused on heavy expansion in the near future and plan to invest a lot of money in this in the near future.
Ted Baker are one of very few clothing retailers who are doing well at the moment, as it seems like consumers have different spending priorities these days. There is no longer the same desire for fashion as there once was, as consumers are now more conscious about spending their money. Whether this changes in the future, remains to be seen, but at present – most retailers are feeling the struggles.