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Let’s Not Be Afraid to Cut Costs!

23-07-2024   


In response to the latest industry news that Burberry is set to axe hundreds of jobs in a cost-cutting exercise FashionCapital / Fashion-Enter Ltd CEO Jenny Holloway comments…

“It’s difficult in fashion! No one wants to be seen to be performing badly but the truth is no business can continually grow and be profitable when the economy has been, using the technical term here – rubbish! 

“There was such a lack of honesty about the economy being in recession but we were and it’s still tough now. When bills increase due to energy costs, inflation is up and the general consensus is to repair not buy then where does that leave hard working manufacturers? 

“We have had to action cost cutting exercises and that has included closing units and natural wastage of staff. We’re still in that place of controlling costs and that means every invoice is scrutinised and every bill we receive is double checked. 

“However, we’re also proud of our achievements. The company is leaner now and a return to a surplus with the last years accounts.  

“And we’re in good company too! Look at Burberry. Shares for the brand fell over 36 per cent in 2024 and now the company is restructuring the business so that it can continue.

“Running a company requires tough decision making and lots of adaptability to the fluctuating market. We will see a return to consumer confidence for sure but for now designer brands dig deep, do what you need to survive and wait for that sunshine to come out again.”




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