Clarks puts best foot forward as rivals suffer
27 May 2009 09:32
Shoe chain Clarks is set to boost its market share by capitalising on the "relative disarray" of its competitors. The firm said that the hard-hit footwear sector could present opportunities for the chain as it reported a 15.6% rise in annual profits for the year to January 31st. Chief executive Peter Bolliger added that the Clarks group - which has operations in countries across the world - achieved a "really outstanding" performance in the year, with pre-tax profits of £86.8 million.
Mr Bolliger added that, in countries such as the UK where the firm has a "substantial brand position" and large number of stores, it "may benefit from the relative disarray of our competitors and pick up market share".
He continued: "Some retailers and franchise partners may turn to us as a 'safe haven' brand in these difficult times".
But he said the economic crisis would present "real and substantial risks" to the group, particularly in its international markets, where it relied on the health of wholesalers for its distribution.
The company, which began life in Somerset in 1825, said the footwear sector had suffered in the consumer spending slowdown, with rivals such as Stead & Simpson and the Stylo-owned Barratts and Priceless brands falling into administration.
Leicester-based Stead & Simpson went into administration last January but was subsequently snapped up by rival chain Shoe Zone. More than 309 stores were saved in the deal, but 37 branches were closed. In February administrators for the Barratts and Priceless shoe group Stylo announced the closure of 220 stores. Another 160 shops and 165 concessions were sold to Stylo's existing management team, led by chairman Michael Ziff.
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