SuperGroup plots store expansion in the UK

Superdry clothing chain SuperGroup today revealed its growth plans remained on track and said that trading had been strong in recent weeks.

The group, which owns the Cult and SurfCo California brands, also confirmed it is to open a new four-storey store in London’s Regent Street, formerly owned by Austin Reed, and said it planned 20 outlets in the UK this year.

The update at an investor day at its Cheltenham headquarters comes as the chain looks to reverse a recent slump that has seen its shares lose their sparkle since a strong stock market debut last year.

It recently admitted that it did not bring out its summer ranges in time to take advantage of warm spring weather, while some analysts fear that its brand may be overexposed.

The group said trading has seen a marked improvement over the past three weeks, complemented by strong growth in sales of its brands to other retailers.

It currently has 61 stores in the UK, but believes there is capacity to open as many as 150. Overseas, where it has 73 stores as franchises, it announced plans to open 50 stores, up from 44 in the previous year.

The group also said it is on track to grow its internet sales to 20% of its turnover from 8% currently as it looks to tap overseas markets such France and Germany and its first entry into the Dutch market.

However, shares were down 6% following today’s announcement as investors remained jittery.