Sosandar, the rapidly growing e-commerce platform for women’s fashion, is poised for expansion and success. The company is taking strategic steps to diversify its operations, including the introduction of physical stores, a shift towards a non-promotional pricing strategy, and expanding its international presence.
- Brick-and-Mortar Stores: Recognizing the enduring appeal of high street shopping, Sosandar plans to introduce physical stores starting next spring. These stores will be strategically located in affluent towns with thriving high streets to cater to the brand’s loyal customer base. Remarkably, this store expansion will be self-funded from the company’s existing cash reserves.
- Pricing Strategy: Sosandar is embracing a new pricing strategy that involves moving away from markdowns and reducing price promotions. The goal is to achieve significantly higher gross margins, targeting pre-tax profit margins of at least 10% in the medium term. While this transition may temporarily impact revenue, the company is confident in its longer-term profitability.
- Global Expansion: Sosandar’s ambitions extend to the global stage. The company has initiated international expansion by partnering with the Global-e platform to efficiently fulfill orders worldwide. Notably, Sosandar has also inked deals with international retailers, such as The Iconic in Australia and The Bay in Canada, surpassing its international expansion targets.
The company’s autumn season has kicked off on a positive note, with robust sales and impressive margins. Net revenue for the recent week set a record, and sales through webstores and third-party partners like M&S and Next have been strong. Sainsbury’s new fashion concept stores and the partnership with Freemans are showing promise.
Sosandar remains committed to delivering quality to its customer base, with an extensive product range, including an exciting occasionwear collection for the festive season. The recent launch of its mobile app has been a notable success, with 20% of sales generated through this channel.
Co-CEOs Ali Hall and Julie Lavington are optimistic about the brand’s future, highlighting their commitment to providing customers with enhanced engagement and shopping choices. They see a bright future as Sosandar expands its footprint within the UK and globally.
The company expects a 10% year-on-year revenue growth for the current financial year, with profitability on an upward trajectory in the coming years.
