IT helps Burberry weather downturn

Burberry has saved up to £20m through supply chain efficiencies. Pic credit: Newscast

Fashion house Burberry has credited IT as a key enabler of its strategy to lower costs and mitigate the impact of reduced consumer spending.

Over the past year, operational highlights at the firm included a back-office transformation, which included an SAP rollout across 15 countries and improvements in supply chain and logistics as well as systems to allow improved visibility of retail sales and inventory.

The supply chain improvements played an important role in the firm's cost reduction programme, generating approximately £15-20m towards a total savings goal of £50m, the firm said in its financial results today.

The retailer, famous for its raincoats, saw profit fall to £174.6m for the year ending 31 March. Sales rose by 21 per cent on the previous year at £1.2bn, but the gain was offset by a margin reduction caused by lower full price sales.

“2008/09 was one of the most challenging years the luxury sector has ever faced, especially in the second half," said chief executive Angela Ahrendts.

"We continued to refine and implement our key brand strategies, adding innovation to core outerwear and accessories, while making significant progress on our IT and operational initiatives," she said.

"Entering the new year, we believe Burberry is best positioned to capitalise on opportunities that will deliver sustainable long-term growth.”