Lead Forensics

Joules unaffected by high street fashion woes

Many high street fashion retailers are struggling, and some, including the Arcadia Group and Jaeger, have gone into administration. Joules, however, has performed well during the last year, despite the coronavirus lockdown, and its share price has risen steadily over the last 12 months

According to Michael Green, writing for Stockpedia, Joules stock is one to watch for investors. He does warn that there is no guarantee that Joules stock will continue to rise, so potential investors need to do their own research to inform stock buying decisions.

The reason Joules is successful is its focus on online sales. The Arcadia group brands such as Topshop, Miss Selfridge and Dorothy Perkins, did not embrace online sales to the same extent as Joules, and this is one reason for their failure. With non-essential shops closed, customers have gone online to continue to buy clothes from their favourite fashion retailers. Nick Jones, the CEO of Joules, said:

“Digital has always been a very important channel to us and, in the space of a year, the proportion this channel represents of our total sales increased by around 20% to more than 70%.”

When nonessential shops open again, it’s expected that many consumers will continue to purchase online rather than visit their local shopping centre.

Online shops tend to have a larger number of lines than retail shops, which are space restricted. This has caused high demand for heavy duty garment rails and other storage equipment to hold the extra inventory.

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