Moss cuts costs to offset downturn

The group confirmed a "comprehensive review" of its cost base was under way to simplify the business and help it weather wider economic conditions.

News of its overhaul came as the group posted wider interim pre-tax losses of 3.3m against 3m a year earlier.

But Moss Bros has seen a marked recovery in like-for-like sales, up 11.6 per cent in the six months to July 31 - a trend that has continued into the second half.

The group said it will be reviewing all aspects of the business, including its supplier base and operations, but is not expecting to make extensive cuts among its 1,600 store staff.

Moss Bros is confident these actions will offset tougher trading, but it is also hoping the suits market will hold up well after the spending review.

It has already been tapping into a trend for young men wanting to smarten up, inspired by television presenters such as Dermot O'Leary and Ant and Dec.

And the group believes a difficult jobs market will keep demand buoyant.

Brian Brick, chief executive of Moss Bros, said: "We have found in the last year that people are dressing up more to look the part and that is going to be more the case over the next 12 months.

"When times get tough people don't want to go into the office and be known as the scruffy one."

Today's half-year figures confirmed the benefit of a revival plan being led by Mr Brick, who was appointed more than a year ago.

Moss Bros, which also trades as Savoy Taylors Guild and Cecil Gee, has enjoyed double digit increases in sales since the start of this financial year.

However, sales increases slipped slightly towards the end of the first half - down from 12.6 per cent in the first 16 weeks as the World Cup and uncertainty surrounding the general election and Budget cuts dampened trade.

Mr Brick added: "Whilst the early response to the autumn/winter range is positive, with like for like sales continuing to improve, we remain in a period with tough economic conditions and consumer uncertainty and with this in mind we are managing the business to reflect these conditions.

"We have launched a fundamental review of the business operating model which will help to simplify the business and reduce the cost base and as such, will provide resilience against the potential impact of any reduction in consumer spending as a result of the wider macro economic environment."

The chain said its recently opened "bespoke" shop had gone down well so far with customers.

Moss Bespoke launched as a flagship store near London's Liverpool Street Station in May, offering tailor made suits from 250 to 500, while it is also sending out a travelling tailor to offices.

The group is now looking at ways to expand the Bespoke chain nationwide through concessions in its store network and franchises with other retailers.

It is also working on plans for a store make-over to update its core estate, although it stressed the pace of any roll out would reflect wider economic conditions.

Moss Bros has more than 150 stores in the UK including 116 Moss and Moss Bros Hire outlets, as well as 35 stores in its fashion division including Cecil Gee, Hugo Boss, Canali and Beale & Inman.