After reporting an 11.4 percent drop in sales for the year to 24 March, New Look is slashing prices as the company struggles to stay afloat.
The fashion retailer is attempting to combat falling sales after entering a company voluntary arrangement within the current high street crisis.
Alistair McGeorge, the executive chairman said: “Last year was undoubtedly very difficult for New Look, with a well-documented combination of external and self-inflicted issues impacting our performance.”
“We have started the new financial year with a much cleaner stock position and are now seeing green shoots emerge.”
“We still have more work to do to restore long-term profitability, but I am confident we are now better placed to achieve this than we were when I returned to the business over six months ago.”
“Trading conditions will remain tough in the year ahead, but further operational efficiencies and a resolute focus on our core strengths and heartland customer will help to ensure we remain on the right track,” he added.
In the year to 24 March, the group posted a loss of £74.3 million and a 7.3 percent fall in revenue to £1.35 billion.
New Look has said that over 80 percent of its items will be sold under £20, in an attempt to boost sales.
In March, the group was approved a CVA to close 60 stores and reduce the rent to save up to £40 million. 98 percent of votes were in favour of the CVA.
“In addition to implementing other cost-saving initiatives, we are already focusing on driving future full-price sales by realigning our pricing to offer significantly better value, adding flexibility to our buying model, and improving our speed to market,” said McGeorge at the time of CVA approval.
This year has seen many high street retailers struggle to stay afloat. Since January, we have seen the collapse of Toys R Us, Maplins and just yesterday Poundworld announced its fall into administration.