It’s fair to say that 2018 has been an Annus Horribilis for poor old VB.
Victoria Beckham’s designer fashion brand LOST £10.2million in a year – £2million more than last year.
Despite losses increasing from £8.2million the previous year, the brand’s overall revenue rose by 17 per cent to £42.5million, up from £36.4million.
The company opened its first store in London in 2014, followed by Hong Kong in 2016. They sell through 400 stockists in more than 50 countries and now employ 180 people. Directors put the negative figures down to heavy investment in “design, production and marketing” in a “difficult global trading environment”. Earlier this year Beckham, who pays herself £700,000 a year, was forced to make a third of her staff redundant.
In contrast with his wife’s business, David’s profits have soared.
So why doesn’t VB join the Spice Girls on tour next year?
Sources reportedly told her not to take part in the ‘lucrative Spice Girls reunion tour’ as it would “cheapen” her luxury fashion brand.
Other fashion stores closing down UK high street outlets include House of Fraser, Debenhams and many New Look, Coast, Orla Kiely and Next branches.
Yes, online shopping is partly to blame but the latest news regarding online fashion giant – ASOS – puts the theory to bed (or at least to rest). ASOS’s sales have plummeted to an alarming extent in the run up to Christmas, which should be their busiest time of the year. As a result, the company’s shares have dropped in value by almost 40 per cent.
“While trading in September and October was broadly in line with expectations, November, a very material month for us from both a sales and cash margin perspective, was significantly behind expectations – say ASOS.
“The current backdrop of economic uncertainty across many of our major markets together with a weakening in consumer confidence has led to the weakest growth in online clothing sales in recent years”.
ASOS’s warning will cause alarm among retailers as, up until now, it has been high street firms bearing the brunt of a brutal Christmas trading period.
ASOS notes that unseasonably warm weather during the last three months has caused reduced spending by shoppers.
It may have been one of the hottest years on record, but that may become the norm. And with Brexit on the horizon, I fear for the high street, the fashion industry and (dare I say it) many other industries in 2019. But do the politicians actually care?