River Island, the privately owned fashion retailer, is preparing to exert a tighter grip on its cost base as the high street faces the prospect of swingeing tax hikes in April.
Sky News understands that River Island, which is owned by the Lewis family, has drafted in AlixPartners to work on a cost reduction and profit improvement exercise at the chain.
Precise details of the scope of the work were unclear on Tuesday, although it is not believed to encompass formal restructuring work that would lead to store closures.
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River Island, which was previously named Lewis and Chelsea Girl, still trades from more than 250 stores, according to its website.
Retailers of all sizes have complained about the prospective impact of forthcoming increases to employers’ national insurance rates, with the industry as a whole facing a multibillion pound hit.
Accounts for River Island Clothing Co for the 52 weeks ended 30 December 2023 show the company made a £33.2m pre-tax loss.
Turnover during the year fell by more than 19% to £578.1m.
The company’s directors said that while the trading environment during the subsequent year had been “challenging”, they remained “positive” about the outlook.
River Island did not respond to emailed requests for comment about the commencement of a costs reduction exercise at the business.
AlixPartners, which has also been hired to advise the discount retailer Poundland’s parent, Pepco Group, declined to comment.
