When Supergroup implemented an upgrade programme in August to the warehouse management system at its Barnwood site, the group experienced some short-term problems which are expected to have a negative impact of around 6 to 9 million pounds in its full-year results.
This is because the transition caused a temporary but significant reduction both in the amount of stock and range of sizes reaching its boutiques in the UK. Although the group’s international and wholesale operations were not affected, its UK store network represents a huge part of its sales. In fact, its first-quarter results ended on July 31 showed a turnover of 61 million euros, of which 38 million came from sales in the UK.
Supergroup anticipates that its distribution capability will have returned to normal levels of operation and have been fully upgraded with additional capability and efficiency in November 2011.
By Olivier Guyot
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