Levi Strauss has said bargain hunting shoppers are impacting its UK sales as it bids to target “young and cool” consumers.
The Northampton-headquartered UK arm of the jeans brand added that it is starting to expand its retail partnerships in the country as “department stores continue to struggle and lose footprint”.
The division made the comments in newly-filed accounts with Companies House for its latest financial year, the 12 months to 30 November, 2023.
For the year, Levi Strauss UK made a turnover of £89m, up from £77.7m, while its pre-tax profit also increased from £4.3m to £7.7m.
Online Levi Strauss shoppers looking for special offers
A statement signed off by the board said: “Traffic has been flattish overall or even in decline during the current year and a consistent trend of bargain hunting is directing price-sensitive customers more to outlets rather than mainline stores.
“Online customers are also more attracted by special offers and the ability to swiftly compare prices across platforms, taking a toll on conversion and return rates.
“As inventory levels are however tightening up with less stock available to put on sale we saw promotional activities drying out with favourable impacts on gross margins and bottom line profitability
“The UK market has also seen an increased investment in female marketing activities which should lead to increased female market share.”
Levi Strauss added: “A more dedicated focus on the young and female consumer group with tailored marketing investments will help to achieve this goal and are expected to boost the lifestyle perception of the Levi’s brand leading to accelerated growth especially in these two areas.
“As department stores continue to struggle and lose footprint in key shopping destinations, we aim to expand the customer portfolio towards online and offline retailers targeting the young and cool consumers.
“Combined with the large footprint of owned and operated stores spread across the country we feel well equipped to serve our target consumer in the near and long-term future.”
During the year the average number of people employed by Levi Strauss in the UK increased from 1,606 to 1,857.
For the same financial year, the wider US-headquartered Levi Strauss group reported a net revenue of $6.17bn (£4.68bn), up from $6.16bn (£4.67bn).