Van de Velde has announced a new investment strategy in response to falling sales.
The Belgian group, which owns the PrimaDonna, Marie Jo and Andres Sarda brands, said it expects turnover to remain flat in 2017 as a result of a “challenging retail environment” and the “evolution of the British pound”.
Therefore, Van de Velde will accelerate investments in areas which it hopes will contribute to international growth.
It plans to resposition its brands and marketing strategies, develop ecommerce with up-to-date IT architecture and increase agility and delivery reliability of the supply chain.
Van de Velde said these investments will result in high expenses in 2017 and 2018, but will translate into sustainable growth of turnover and profitability in the coming years.
The news comes as Van de Velde confirmed to Lingerie Insight that it had launched a new PrimaDonna sports line in Belgium. Click back to Lingerieinsight for more details on this.
Last month, the group posted its first fall in turnover in 19 years. Sales fell 1.1% to EUR206.6 million in the 52 weeks to December 31, while profit for the period fell 18% to EUR33.6 million.
These results were attributed to a fall in the pound, disappointing retail results in the United States and the growth in ecommerce impacting shopping behaviour.