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research and understanding of our to reserve products they want online contribution and counsel in driving
target customer is expected to see the and collect them in store. the transformational change for the
growth of the Millers brand continue Group. I wish them both all the very
in the 2016 Financial Year. Managing Costs best for the future.
I would also like to thank and
Rivers Integration As a value retailer, we have developed congratulate the whole Specialty
cost effective product sourcing Fashion Group team for their efforts
We have maintained a focus on initiatives. We source the vast over 2015. It has been a privilege
integrating the Rivers business into majority of our product from South to work with a highly dedicated
the Group, addressing brand legacy East Asia. In the financial year we team, and it has been rewarding
issues and ensuring that the Rivers achieved an average exchange rate of to experience their energy and
division of the Group can benefit 91 cents, compared to 94 cents the enthusiasm throughout the year. In
from the efficiencies derived from a year before. While this represents this regard I express my appreciation
scalable operation. We have worked a year-on-year decline, we have for their efforts and look forward to
to reduce aged inventory, minimising strategies in place to mitigate the new successes in the year ahead.
the impact of aggressive discounting impact, including hedging for the
to the brand. The focus is to next 12 months. Gary Perlstein
continue rebuilding Rivers’ brand CEO
equity and iconic status to ensure Further cost management strategies
it is contributing to the Group’s include using the Group’s scale to 038
profitability by 2017. negotiate with vendors and the
bulk ordering of fabrics to minimise
International Expansion costs. We have also been trialling a
number of new vendors in different
Our international expansion this regions, which not only mitigates cost
year has seen seven City Chic stores pressures, but also adds distinctive
opening in California, adding to fabrication and appeal of product
the two stores already operating in sourced through an alternative
South Africa. Strong initial response channel.
to City Chic in the US has resulted
in expanded distribution with 60 The Outlook for 2016
Nordstrom stores now supplying City
Chic products. Further international The Rivers acquisition has facilitated
expansion and growth opportunities the Group’s entrance into the mens
will be considered over the coming retail and footwear markets, where
12 months. we previously had limited exposure.
In the coming year we will continue
EnhancedCustomerEngagement to build on our internal design
capability and further develop our
We continue to develop our dedicated international business model.
Customer Insights team and invest in
customer relationship management We believe the strategies we have
(CRM) capabilities that have seen in place will ensure our future
our customer membership database success, and we are excited about
growing to 8.6 million as at 30 the opportunities that our digital
June 2015. Our CRM capabilities investment can achieve. The Group
now enable us to contact more than is well positioned with its core brands
4 million of our customers directly and the appropriate teams are
by email, representing a distinct and in place to deliver an exceptional
powerful competitive advantage. customer experience for our loyal
members.
During the year we have maintained
our focus on developing the omni- I would like to pay tribute to our
channel experience for customers. retiring Chairman, Geoffrey Levy
Click & collect is a significant and retiring Co-Founder and
initiative that allows our customers Director Ian Miller for their significant
