French Connection considers ditching Royal Mail deliveries

[TrueBlueTerrier]

http://www.mirror.co.uk/money/city-news ... yal-838029" onclick="window.open(this.href);return false;

FASHION firm French Connection is thinking of ditching Royal Mail deliveries after a hike in postal prices.

Around 10% of its sales are made online and it uses the postal giant to dispatch orders.

But Neil Williams, the firm’s operations director, said the company was weighing-up the competition after Royal Mail jacked-up prices just over a fortnight ago.

He confirmed: “We do use Royal Mail at the moment but we are, because of the prices, looking at that.

“We need to mitigate the increase and we have been talking with competitors.”

The threat came as French Connection’s shares crashed by nearly 25% yesterday after it issued a profit warning following a 12% slump in sales in the UK and Europe during the last three months.

It said: “Stronger demand for discounted products during the winter sale in the early part of the period has resulted in a lower gross margin.”

French Connection ordered a shake-up of its UK business in March after it made a thumping £8.2million loss last year.

At the time the company said “everything is on the table” as part of the reorganisation, with 14 shop leases due to expire in the next two years.

In its update yesterday, French Connection said its US arm was improving, with sales up by 11% in the past 15 weeks.

But its net cash balance tumbled by 39% to £11.3m caused by the drop in group sales overall.

The firm also warned it faced a tough year ahead.

It said: “The UK retail market remains ­particularly challenging and the combination of prevailing consumer caution and ongoing economic difficulties suggests that this will not improve in the second half of the year.

“Given this, it appears unlikely that our profit performance for the full year will meet current market expectations.”

[fishtank]

FCUK.

[POSTMAN]

Maybe i'm getting old,but...
http://www.frenchconnection.com/content ... y-for-work" onclick="window.open(this.href);return false;

Primark it is then.

[fishtank]

FCUK that.
I'll see you at Primark.

[blackadder]

now call me stupid and many do. but we deliver to every door in the land so therefor we should be cheaper then say yodal. the problem i finks is with r.m management pricing us out

[Lincox]

Never pictured you as a man with a beard Fish. good pair of legs tho for a postie.

[clashcityrocker]

Looks like he dyes his hair though..........

[fishtank]

Looks like he dyes his hair though..........

Never pictured you as a man with a beard Fish. good pair of legs tho for a postie.

No beard.
No hair dye.
Not fat.
No "size" issues.
I'm a veritable f***ing babe magnet.

[Lounge Lizard]

Can't think of the last time I delivered one of their parcels, so won't be a great loss.

[Lincox]

You been watching too many of them Piggy films Fish.

[rhino49]

Company in a hole blames it's position on a company trying to get out of one!!!
- FCKU and good lcuk with finding a cheaper and reliable alternative

[Lounge Lizard]

Company in a hole blames it's position on a company trying to get out of one!!!
- FCKU and good lcuk with finding a cheaper and reliable alternative

Indeed, instead of
"FASHION firm French Connection is thinking of ditching Royal Mail deliveries after a hike in postal prices."
it should be
FASHION firm French Connection is thinking of making clothes people want to buy. .