Mastering the crisis: turnaround in fashion retail

Fashion retail is under massive pressure: sluggish consumption, rising costs and structural weaknesses are forcing companies to take action. But instead of cosmetic interventions, a clear turnaround is needed. Horn & Company shows how holistic restructuring can be successful.

An industry under constant stress

The fashion trade is in deep crisis. Customer preferences have changed over the years, while the innovative strength and adaptability of many providers have stagnated. The crises of recent years - from the coronavirus pandemic to disrupted supply chains and inflation - are now acting as a magnifying glass for the structural weaknesses of the industry. Added to this is the ongoing pressure from digital competitors. Insolvencies, branch closures and market exits are no longer isolated cases, but an expression of a systemic problem.

At the same time, it is clear that many companies are still clinging to outdated business models. Inefficient processes, an outdated branch network, blurred positioning and excessive stock levels characterize the picture. The lack of expansion of digital sales channels and only hesitant implementation of omnichannel concepts further exacerbate the situation.

Holistic change instead of short-term savings programs

The current situation is undoubtedly challenging - but not hopeless. Restructuring today means far more than just cutting budgets or closing individual locations. It requires a structured and holistic approach that not only reduces costs, but also aligns the business model for the future.

This is exactly where Horn & Company comes in. We not only support companies in stabilizing their financial situation, but also work together with the management to develop a resilient target picture that meets the future requirements of the market. At the same time, the team identifies cash potential that can be mobilized in the short term - for example through targeted optimization of material costs, personnel structure and working capital. These measures are systematically implemented by a central Project Management Office (PMO), which continuously monitors and controls progress.

Horn & Company also provides support with well-founded restructuring reports in accordance with IDW S6 and checks the plausibility of financial planning. A particular strength lies in professional communication with banks, investors and other stakeholders. Especially in tense situations, this transparency creates the necessary basis of trust for a successful transformation.

Restructuring in practice - proven approaches

Specific practical examples show just how effective this approach is. Horn & Company supported the restructuring of a large, chain-based sports retailer with over 200 locations in five countries. The business model was realigned in a comprehensive transformation process. The product range strategy was revised, the brand image sharpened and a targeted personnel and cost structure implemented. At the same time, a modern reporting system was introduced to create transparency for all stakeholders. Structured communication with shareholders, banks and employees ensured broad support for the measures introduced.

A pure online player with activities in 13 countries and several sales channels was also successfully supported. The focus here was on a consistent realignment along the value chain: from product range planning, demand forecasting and performance marketing through to the closure of loss-making foreign subsidiaries. The operational streamlining was flanked by an optimization of the management structure and logistics locations. The result was a significantly more agile, leaner and market-oriented business model.

Conclusion: Act now - don't regret it later

The current situation in the industry does not call for cosmetic corrections, but rather a bold new start. Those who are prepared to consistently question and realign their business model can emerge stronger from this phase of upheaval.

Horn & Company not only has the expertise, but also the methodical and communicative tools to guide fashion companies safely through this change. Now is the time to act - before challenges become real threats.

Let's shape your future together.