Fatface shuts all US stores but expands UK network

A FatFace fashion store in Chelmsford showing the brand's storefront with sale signage visible in the windows (Illustrative image) (Photo by John Keeble/Getty Images) Getty Images

High street fashion retailer Fatface is closing all 23 of its US stores and cutting 145 jobs as it transitions North American operations to an online-only model. The company operates 170 UK stores and employs approximately 2,400 staff members.

Rising costs and economic uncertainty have made physical American stores unsustainable for the brand. The strategic shift represents a major restructuring as Fatface focuses resources on its profitable UK operations.

UK expansion amid US retreat

Despite the American withdrawal, Fatface is simultaneously expanding its UK presence with three new stores opened this year. The company has also renovated seven existing outlets and refreshed 28 storefronts across Britain.

The retailer plans to expand its global digital footprint by rolling out online services in new territories over the coming months. A new store opened in Blanchardstown, Ireland, as part of this growth strategy.

Financial pressures drive strategic pivot

Pre-tax profits dropped 21 per cent to £16.9 million for the 52 weeks ending 25 January. Turnover declined 11 per cent from £267.7 million to £237.4 million.

The profit decline was partially attributed to migrating online operations onto Next's comprehensive platform. CEO Will Crumbie said: "While with any digital migration it can take time, this move will give us additional digital capabilities to enhance the experience for our customers and more seamlessly manage our operations."

Focus on profitability over volume

The company has emphasised full-price sales rather than heavy discounting, reflecting a strategic approach to maintaining margins. During the first half of its current financial year, Fatface reported growth in pre-tax profit.

This improvement was bolstered by a 6.6 per cent increase in full-price sales and a 3.4 per cent rise in like-for-like store revenue. Crumbie stated: "We have made good progress this year in executing our strategy and financial objectives. We continued to focus on full price sales, with a strategic approach to discounting at specific times of the year. Our store network continues to be a core part of our offer with new stores opened in the year, including in Blanchardstown in Ireland bringing our high-quality clothing to even more communities."

Sources used: "Daily Star", "Express" Note: This article has been edited with the help of Artificial Intelligence.