Sosandar keeps prices under review amid Middle East conflict
Sosandar has said it has no immediate plans to increase retail prices but remains “open-minded” about future rises if escalating tensions in the Middle East put further pressure on supply chain costs.
Sosandar has said it has no immediate plans to increase retail prices but remains “open-minded” about future rises if escalating tensions in the Middle East put further pressure on supply chain costs. The womenswear retailer’s comments come as conflict in the region continues to raise concerns over global shipping routes and input costs. The US carried out a third consecutive night of strikes againstIranon Monday (13 July), while two Emirati tankers came under Iranian fire in the Strait of Hormuz. US President Donald Trump has also announced plans to reinstate a blockade on Iranian shipping and said vessels transiting the strategic waterway would be charged a fee for US-provided security. Sosandar co-CEO Julie Lavington told Drapers the business was monitoring the situation but had not made any decisions around pricing. “At this point, we haven’t got any [recommended retail price] increases set in mind,” she said. “But I think everybody’s got to remain open-minded because none of us know how long the situation in the Middle East is going to go on for. ”“If it escalates, it might impact raw materials to a greater degree and it might impact our buying costs, so we have to remain open-minded. Nothing specific at this point. ”In late March, Next chief executive Lord Wolfson warned clothing prices could increase bybetween 4% and 10%if the war in the Middle East persists, while last week, suppliers and buyers attrade show Sourcetold Drapers the conflict in the Middle East had caused a spike in prices of shipping and materials, with one supplier estimating the overall price increase of the average garment by 15-20%. The comments came as Sosandar on Tuesday morning (14 July) reported underlying pre-tax profitdoubled to £400,000 for the year ended 31 March 2026, with revenue increasing 14% to £42. 3m. The retailer said gross margin had improved for the fourth consecutive year, reflecting its continued focus on full-price trading and margin improvement. Lavington said the business was “delighted” with the performance, highlighting growth across its own website, stores and third-party partnerships, which includeMarks & Spencer,NextandJohn Lewis. Online sales increased 24% year on year, while Sosandar said trading with its retail partners remained strong followinglast year’s cyber-attack on M&S. Lavington said: “Because our channels are so diversified, we managed to get through the challenges with M&S, and now M&S has completely bounced back, and we’ve had a great start to the new financial year with them. ”The retailer has also continued to expand its physical presence with stores in Bath’s SouthGate shopping destination and Harrogate’s James Street, although it said it would prioritise improving profitability across its existing estate before opening further stores. Sosandar transferred the lease of its Bath store to another retailer after assessing that the location’s occupancy costs were too high relative to the sales needed to deliver an acceptable return. Co-CEO Ali Hall said: “Our priority at the moment is to focus on getting the stores that we’ve got to break even before we open any more. ”