New Look sees the sun shining but Brexit clouds loom ahead

The sun maybe shining but retailers shouldn’t bank on High Street conditions hotting up, the boss of New Look warned today.

Warm weather and summer discounts helped retailers defy Brexit jitters and lift sales by 1.1% in July against a 0.5% fall in June, according to the British Retail Consortium. But New Look chief executive Anders Kristiansen said that did not signal an end to the sector’s troubles.

“It’s too early to call. I personally don’t think a few good weeks of weather will change sentiment,” he said.

New Look’s UK like-for-like sales were down 7% in the three months to June 25. Kristiansen pinned that on waning consumer confidence, partly because of the uncertainty created by the EU referendum.

However, he admitted some wounds were self-inflicted and the retailer could have stocked more transitional products to offset unpredictable weather.

Underlying operating profits at the company, bought by South African businessman Christo Wiese for £1.9 billion last year, slid more than 35% to £30.5 million.

Kristiansen said New Look would not pass on the effects of the weaker pound to customers and was instead looking to move production from China to cheaper locations like Myanmar.

In the long term, it is focusing on growing its international business, online and menswear. Menswear-only stores open in Romford and Reading this week.