Superdry to lift prices despite influencer boost

Superdry's boss has warned that shoppers should expect higher prices and no more sales in its shops because of rising costs.

Julian Dunkerton told PA it would increase prices on some clothing items by about 2% due to rising inflation.

It hopes to offset price rises by cutting the number of items it puts on sale online too.

"No stores will ever have a sale again and discounting is limited to a shorter period online and very limited."

Other companies, such as Kingsmill bread-owner AB Foods, Greggs and Next have all said that spiralling costs of wages, manufacturing and raw materials mean they have either put prices up or are planning to do so in the future.

For Superdry, it comes despite a return to profit for the company and a boost from social media influencers.

The company reported a pre-tax profit of £4m in the six months to late October - up from a nearly £19m loss one year before when non-essential shops were closed during lockdown.

Sales across the company dropped, however, by 1.9%. The company said that was down to the fall-out of the pandemic, as well as its move to reduce discounts.

It pointed to bright spots in Christmas trading, with jacket sales up 40% year-on-year, for example.

The company is also looking to draw in younger shoppers with a mix of different products.

Superdry said that mini skirts and flares had been performing well with older teens - one of their key target markets.

To capture the imagination of younger fashionistas, it has stepped up its social media marketing on Instagram and TikTok, taking cues from the likes of online giants Boohoo and Asos.

The company now works with about 2,000 influencers, up six-fold year-on-year, and said its Instagram followers had increased by nearly a quarter.

Superdry, which started out as a market stall in Cheltenham, was set up by by Mr Dunkerton and James Holder, and went on to enjoy huge commercial success.

But clashes followed between Mr Dunkerton and the board, leading to his resignation from the board and eventual return in 2019 to "steady the ship" after huge losses.

Increasing engagement on social is understood to be a key part of his strategy, with the brand working on influencers and tie-ups with celebrities such as Brooklyn Beckham and football superstar Neymar Jr.

Superdry's new flagship store on London's Oxford Street has also put selfies and reels at its centre.

Having opened in November, it features an entire floor closed to the public, instead dedicated to hosting social stars in its showroom and bar.