High street fashion retailer River Island has reportedly called in AlixPartners to work on a cost reduction and profit improvement plan
The brand, which is owned by the Lewis family, is not expected at this time to close any of its 250 UK stores. With Sky News reporting that the move was simply to get “a tighter grip on its cost base as the high street faces the prospect of swingeing tax hikes in April”.
Both River Island and AlixPartners are yet to comment on the possible collaboration.
River Island had recently been described as a survivor of the UK high street, by the RetailX Europe Top1000 report.
The fashion brand, founded in 1948 by Bernard Lewis and his brothers, has avoided the move to pureplay that followed the demise of one-time rivals including Topshop, Dorothy Perkins and Burtons. It continues to be family owned through the Lewis Trust Group.
In October 2024, River Island posted a pre-tax loss of £32.2mn. It explained that this was driven by a 15% decline in sales due to increased competition and “customer preference for more diverse, convenient and speedier shopping journeys with increasing competition, especially in the digital space”.
River Island had stressed that 2025 would be a “year of reset”, involving revamped product lines, store investment and potential staff changes.
“The business has invested in customer proposition with stranger product ranges, an enhanced shopping environment in stores and an elevated digital experience,” it stressed. The brand added that customers have already started responding positively to these modifications.
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