Actif tones down its branding
Actif, which distributes Elle clothing in Britain, has been forced into a French Connection-style rethink of its aggressive branding.
Just as French Connection has toned down its use of the risque FCUK logo on its products, Actif chief executive Mark Evans said yesterday that it was going down the same route as shoppers were beginning to tire of heavily branded goods.
The clothing retailer and wholesaler slipped to a pre-tax loss of £460,000, compared with a profit of £85,000 in the year to 30 July after second half sales slowed dramatically. Sales fell back 6 per cent to £25.9m.
Mr Evans said: “We have significantly changed the Elle product. Instead of large Elle logos we have gone for more discreet branding.”
The revamp is being led by commercial director Catherine Scorey, formerly of Ted Baker, with some of the new designs available next month.
Actif has been hit on both fronts as sales from its shops slowed — down 6.5 per cent on a like-for-like basis for the year — and wholesale customers adopted a more prudent approach to buying. It expects orders for spring/summer 2006 to remain cautious.
The retailer cut costs by reducing its head office staff from 65 to 50, generating savings of £600,000 this year.
A further £150,000 will be saved in 2007 when it vacates some of the office space it occupies in Little Portland Street.