EMBATTLED fashion retailer New Look is set to close as many as 100 stores in the UK as part of a radical turnaround plan to cut costs and improve profitability.
It includes the 60 outlets already marked for closure under a company voluntary arrangement approved in March.
But executive chairman Alistair McGeorge said the number which will definitely close after negotiations with landlords is now at 85, and discussions are ongoing regarding a further 13 stores.
Among the buildings New Look is already set to vacate is Fountain House in Belfast's Donegall Place, which Primark will occupy from next spring.
New Look currently has 19 stores in Northern Ireland, and others are likely to close as part of this latest downsizing.
The announcement came as the company posted an underlying operating profit of £22.2 million for the first half, compared to a loss of £10.4 million in the same period last year.
But revenue declined by 4.2 per cent to £656.9 million. Like-for-like sales under the New Look brand dropped by 3.7 per cent, a slower rate than last year's 8.6 per cent drop.
The high-street mainstay said the slide in sales was in line with its plan to improve profitability with more full-price sales.
Mr McGeorge said the first part of the recovery was going well, but that he would like to "move faster".
"We're not looking to defend our position, we're looking to attack," he said.
In addition to the restructuring of its UK base, New Look last month announced its decision to exit its retail business in China, where it has 148 stores.
Annualised cost savings of £70 million have now been achieved, with another £8 million to be added.
As part of the turnaround, New Look has also improved its UK market share and ramped up online operations, increasing click and collect sales by 41 per cent in the first half.
Mr McGeorge warned that conditions on the high street remain challenging.
"We continue to work hard to accelerate our progress, but we are facing into significant headwinds and uncertainties, including Brexit," he said.
"Clearly the wider retail environment remains challenging and we are not expecting that to change anytime soon. However, we are on the right track and continue to drive further efficiencies across the business.
"As we look to the second half, our focus will be to continue to improve our financial and operational stability and further capitalise on our brand strength to position us well for the future."
