River Island calls in advisers in cost-cutting drive
River Island has drafted in advisers as it looks to cut costs and improve profits ahead of tax increases in April.
The fashion retailer has appointed advisers from AlixPartners, the firm which has also been hired by Poundland’s owner Pepco in a cost-cutting drive, Sky News has reported.
It is believed that any cost-cutting measures would not lead to the closure of any of River Island’s 250+ stores.
Many retailers have been vocal about incoming increases to employers’ national insurance rates and the minimum wage, as well as a reduction in business rates relief, stating that these higher costs will be unsustainable.
The latest accounts for River Island showed a £33.2m pre-tax loss for the year ending 30th December 2023, while turnover declined by more than 19% to £578.1m.
River Island and AlixPartners declined request for comment.