High street retailer River Island has reported a pre-tax loss of £30m as it grapples with the challenges of online competition and escalating costs. The firm disclosed a pre-tax loss of £32.3m in 2023, a significant drop from a profit of £7.
5m in 2022, as per the latest accounts filed with Companies House, as reported by . Revenue declined by 15.1 per cent to £701.
5m, down from £825.8m in 2022, while earnings before interest, tax, depreciation and amortisation (EBITDA) plummeted by 146 per cent, turning from a profit of £26.5m in 2022 to a loss of £12.
5m in 2023. River Island attributed its struggles to a mix of increased operating costs "primarily due to wage price increases" and difficulties in adapting to the evolving retail environment. The company noted a "customer preference for more diverse, convenient and speedier shopping journeys with increasing competition, especially in the digital space".
E-commerce companies like Shein have disrupted the sector, with their affordable offerings resonating with the fast-paced fashion trends driven by social media. River Island, traditionally a high street store, faced particular hardship during the pandemic a period when e-commerce firms like Shein thrived and had to shut several stores during the lockdowns. In 2023, the company was also impacted by a decrease in sales, the cost of clearing surplus stock, and the ongoing shopping crisis in the Red Sea, it added.
Nevertheless, the retailer expressed optimism about its future.
