UK retailer Studio Retail has experienced a strong retail performance in the first half of its trading year, driven mainly by its online offerings. Despite the ongoing impact of the pandemic, the company has seen a remarkable 39% increase in product sales during the first 26 weeks of the year. The positive momentum has continued in the following six weeks, with sales up 30% year-on-year.

Studio Retail attributes its success to its kidswear, gifting, and early Christmas ranges, which performed exceptionally well during the early weeks of its new AW20 season. Additionally, the company has reported a 15% growth in its active customer base over the past year, reaching 2.1 million customers, with 1.4 million having an active credit account.

The retailer has capitalized on the online boom that occurred in 2020, with e-sales now accounting for over 90% of total orders. The Studio App, which was launched recently, has also proved popular, boasting over 0.7 million downloads.

Interestingly, despite an initial decision to de-risk seasonal clothing ranges at the start of the lockdown, Clothing & Footwear sales have grown by 22%. This strategic move allowed the company to exit the SS20 season with a clean stock position. Moreover, Home & Leisure ranges have experienced the strongest year-on-year online growth at 80%.

Looking ahead, Studio Retail expects its adjusted profit before tax for the year, including the impact of IFRS 16, to exceed its previous internal expectations. The company anticipates that the peak trading period of Q3 will significantly contribute to its overall sales performance.

Useful Links:
1. Studio Retail Website
2. Retail Gazette