Sir Philip Green suffers profit hit as he drafts in McKinsey to save online sales at Arcadia

 
Helen Cahill
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Green has also been trying to save Topshop Australia (Source: Getty)

Sir Philip Green's profits took a hit last year as the fashion tycoon struggled to overcome the difficulties of an increasingly tough trading environment in UK retail.

The profits of Green's holding company Taveta Investments fell 16 per cent to £211m in the year ending last August, and sales fell by 2.5 per cent.

Now, the retail tycoon is bringing in management consultants McKinsey & Co to help with online sales at Arcadia Group, a business that comprises several fashion brands including Topshop and Dorothy Perkins.

The total sales for the group were just over £2bn last year.

Read more: Sir Philip Green moves in to save Topshop Australia

Over the past year, Green has been struggling with the fallout from the collapse of BHS, which he sold to serial bankrupt Dominic Chappell for £1. Green was forced to commit a large portion of his personal fortune to plug the deficit in BHS' pension scheme.

Now, he has doubled annual pension contributions for the current staff in his retail empire to £50m.

The Green family did not take out a dividend from Taveta in the year to August 2016, and the group was left with a cash stockpile of £223m. The group also invested around £100m as it pushed its brands overseas, and sought out more online sales.

It is expected that McKinsey's appointment will help Arcadia with its online offer. The group has around 40 online sites to manage, and is looking to maximise mobile and international sales.

Meanwhile, Green is seeking to save Topshop Australia, which has gone into administration. The franchise has nine stores, 17 concessions and it employs 760 people.

McKinsey declined to comment.

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