Sosandar has established itself as a vibrant player in the online fashion sector, carving out a niche for premium womenswear and appealing to a diverse population via its dynamic online platform. Sosandar is making waves with its impending move into physical retail, marking a strategic shift away from a primarily internet presence. After recovering from a significant deficit to a promising profit in the second part of the fiscal year, the online fashion powerhouse is focusing on brick-and-mortar stores to supplement its successful online platform.
Financial resurgence and strategic shift
Sosandar has had a stunning reversal this fiscal year. The company’s overall performance has been solid, with a loss of £1.3 million in the first half and a laudable profit of £1.1 million in the second, culminating in a marginal loss of £200,000 on sales of £46.3 million. This rebound is partly due to the brand’s altered pricing strategy, which reduced the frequency and depth of discounts, increasing the gross margin from 56.1% to 57.6%.
The Bedrock and Beyond: Strengthening Digital Foundations
Despite its physical expansion, Sosandar’s digital domain remains the cornerstone. The brand’s website and newly launched app have strengthened its online presence, offering a strong platform to match its storefront ambitions. April’s trading numbers have already shown solid performance, with continuous increase in profitability, notably gross margins.
Strategic Store Rollouts: Optimising for Success
Sosandar has painstakingly planned the development of its physical stores, which are set to open in spring 2024, with the goal of boosting its market share. The locations are carefully chosen, with an emphasis on high-traffic areas with excellent visibility. This strategy is supported by the fact that over 60% of the UK’s £60 billion annual clothing industry transactions still take place in physical stores, underlining the significant opportunity for a multi-channel approach.
CEO Insights: A Vision for Multifaceted Growth
Co-CEOs Ali Hall and Julie Lavington are optimistic about the expansion, noting the Sosandar brand’s strength and varied product range as important factors. “We are incredibly proud to see the success that our Sosandar clothes are having in the UK’s biggest retailers and through our first partnerships internationally,” the company said. The duo expects this growth to boost the brand’s presence in the UK and around the world, with a target of over £100 million in sales and a 10% margin in the medium term.
Conclusion: A Future Designed for Growth
Sosandar’s entry into the physical realm is more than just a geographical expansion; it’s a strategic evolution meant to expand on a successful online model by leveraging physical stores to create a more immersive brand experience. With a strong financial strategy and a clear vision for the future, Sosandar is well-positioned to reshape its market position and achieve significant growth in coming years.
