Covid-19: Superdry doubles its eCommerce revenue during crisis

Superdry has seen its eCommerce sales increase by 100% in the last four weeks compared to average levels before the Covid-19 crisis. The clothing retailer said that revenue generated via its online channels has offset around one-third of its lost store sales, with all its physical shops Europe, USA and UK closed since 22 March due to Covid-19 lockdown restrictions.

In a pre-close trading update published today, Superdry revealed its eCommerce revenues had almost doubled to approximately £3.7 million per week during the last four weeks. It has put this shift down to the full closure of its retail store estate as well as improved product and imagery, re-energised social media campaigns, and an extended end of season sale.

The period prior the Covid-19 crisis paints a different picture of Superdry’s online performance, with eCommerce revenues declining by 8.2% overall in FY20. However, there was an improved performance towards the end of the financial year, with an 18.8% year on year growth in the six weeks to 7 March, contributing to a 6.8% rise during Q4 of FY20.

The retailer recorded a bleak performance overall, however, with a drop in store revenue of 22.9% in FY20, including a reduction of 57.0% in Q4. In addition, wholesale revenues were down by 20.1% in FY20.

Superdry’s CEO, Julian Dunkerton commented: “As with all retailers, the Covid-19 pandemic has caused major disruption to our business operations and supply chain. I am pleased with the accelerating shift in sales to online, and we've seen a particularly good performance from our women's ranges which, for the first time ever, are accounting for around half our sales. Clearly however, the closure of all our stores has had a major impact. We are taking all practical steps to preserve cash, looking carefully at all areas of the business and working to secure additional liquidity and financial flexibility.”

The Covid-19 pandemic has significantly hampered Dunkerton’s plans to revitalise the business, which are likely to resume once lockdown restrictions are lifted.

Pippa Stephens, retail analyst at GlobalData said: “It should make its designs more trend focussed, to reduce its negative perceptions, and regain greater desirability among younger shoppers. Superdry is also facing tough competition from fast fashion players like boohoo.com and ASOS, with its prices appearing expensive in comparison, so must better justify its price points through brand exclusives and celebrity endorsements.''