Kurt Geiger, the British footwear and handbag retailer, experienced a significant increase in sales by almost 10% in the last year. This growth was attributed to fashion fans opting for more affordable luxuries during the cost of living crisis. The company reported a 9.4% rise in revenues in the year leading up to January 2024, with handbag sales particularly booming after price cuts.
The brand also saw success in the US market, with celebrities like Kylie Jenner, Jennifer Lopez, and Paris Hilton endorsing the brand. Despite a challenging time for the luxury clothing and footwear sector due to the cost of living crisis, Kurt Geiger’s strategy of offering more affordable options seemed to have paid off. The company’s CEO, Neil Clifford, noted that the focus on accessible luxury had driven an increase in sales, with growth expected to continue in the following financial year.
Clifford emphasized the importance of offering products at a lower price point compared to competitors while maintaining quality and creativity. The company’s handbags range from £59 to £289, catering to a wider audience looking for affordable yet stylish accessories.
Analysts pointed out that Kurt Geiger’s success was also fueled by international expansion and a shift towards investment dressing. The company’s plans include opening more stores in the US, with a long-term goal of 50 stores in the country. Additionally, the brand has invested in marketing, including hiring model Emily Ratajkowski for their campaigns.
Overall, Kurt Geiger’s emphasis on affordable luxury, strategic pricing, and international expansion have proved to be successful drivers of growth amidst a challenging retail landscape.
Source
Photo credit www.theguardian.com