High street fashion giant with 170 UK shops closes 23 stores as profits plummet

Fashion and lifestyle brand Fatface is set to close all 23 of its US locations as it transitions its North American operations to an online-only format. According to an insider, increasing costs and economic uncertainty have made maintaining physical stores in the US unsustainable. This change will lead to the loss of 145 jobs.

Meanwhile, Fatface plans to focus on its UK retail presence, having recently opened three new shops, renovated seven, and refreshed 28 storefronts this year. The company also aims to grow its international reach by launching online services in new markets in the near future.

The retailer trades from 170 stores in the UK and employs around 2,400 staff members. It reported a 21% decrease in pre-tax profit, which fell to £16.9 million for the 52 weeks ending 25 January. The decline was partly linked to the transition of its e-commerce operations onto Next's total platform.

Will Crumbie, CEO at Fatface, said: "While with any digital migration it can take time, this move will give us additional digital capabilities to enhance the experience for our customers and more seamlessly manage our operations."

Sales dropped by 11%, from £267.7 million to £237.4 million, reflecting the retailer's increased emphasis on full-price sales and a "smarter" product range across womenswear, menswear, and accessories.

However, during the first half of its current financial year, Fatface reportedgrowth in pre-tax profit, supported by a 6.6% rise in full-price sales and a 3.4% increase in like-for-like store revenue.

Crumbie added: "We have made good progress this year in executing our strategy and financial objectives. We continued to focus on full price sales, with a strategic approach to discounting at specific times of the year. Our store network continues to be a core part of our offer with new stores opened in the year, including in Blanchardstown in Ireland bringing our high-quality clothing to even more communities."