Despite appearing on channel Nine’s 60 Minutes in February 2009 as an Australian business taking the US retail market by storm, Peter Alexander has already signalled the closure of at least one of its three California based stores after only six months.
Losses totalling a massive $4 million in just six months provide a grim reality bite for the sleepwear fashion label. The losses and poor performance in the US have been blamed for poor timing.
Peter Alexander (owned by the Just Group) couldn’t have timed it any worse, given the collapse of the US financial system which directly flowed to consumer confidence and retail spending.
It is reported that US sales will be instead pursued via wholesale distribution to department stores, and via the internet.
Despite the grim news from the US front, Peter Alexander has growth from strength to strength in Australia over the past twenty years, represented with over twenty domestic stores. The latest figures report an 8.4% lift in sales (July to Dec 08), a very strong figure considering the economic crisis.
Another sign of the times is the closure of MORRISSEY stores in Brisbane, Sydney and Melbourne…
Who is next we wonder…. I’m certain time will tell….