Sir Philip Green's Arcadia hit by credit crunch
Sir Philip Green’s Arcadia, which includes Topshop, Miss Selfridge and Dorothy Perkins, is being hit by the credit crunch, with operating profits for 2008 down by 6%.
Although the company still made £275.3million this year, Green says ‘it’s a tough market place’ and that all retailers will ‘have to work harder’ moving forwards.
Actual sales in Sir Philip’s stores are only down 2.8% year-on-year, but costs of opening new stores push the operating profits figure lower and will have an impact on the business as the credit crunch bites.
Topshop remains the jewel in the Arcadia crown, although it’s Topman where sales growth has been most dramatic.
The real question on everyone’s lips, however, isn’t to do with Green’s current portfolio of brands, but whether he’s about to snap up any more – namely stores owned by troubled Icelandic group Baugur, which include Karen Millen and House of Fraser.
‘It is probably a little bit too early… there are political issues… it is quite complex,’ the high street king told the BBC.
‘We may do [a deal]. We are ready to do this if we think it is still the right business for us. We have still got our net out.’