No more sales at Pietro Filipi

by   CIJ iDesk I
2020-07-23   10:49
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The Czech fashion retailer Pietro Filipi is done with discounts, according its owner Michal Micka. Unlike other retailers who are trying to sell off their inventories at greatly reduced prices, Micka says that the incessant use of lower prices to sell goods is unsustainable. "We don't want to support the set-up on discount strategies in which you set a high price for the product at first and then put a discount on whatever doesn't sell at the end of the season," he said. He points out that the production of any piece of clothing is the result of work by many people and that the current ways of selling fashion is ecologically not sustainable. But is Micka's ethical stance financially sustainable? The coronavirus crisis has had a negative impact on the brand's financial results, which were weak to begin with. The company lost CZK 6.7 million in 2018 with turnover of CZK 431 million. Micka's brands Pietro Filipi and Kara then lost hundreds of millions of koruna in sales during the lockdown period. To survive, Micka reduced his buying for the fall-winter season by 65 percent and by 50 percent for next spring.