Home 5 News 5 What’s Behind ‘Indigo Books and Music’s’ Downturn?

What’s Behind ‘Indigo Books and Music’s’ Downturn?

by | Sep 18, 2023 | News

 

The troubles continue for Canada’s Indigo Books and Music chain.  Its CEO Peter Ruis has resigned, following a year of problems and losses.  Sales in the quarter that ended 1 July dropped 12% to C$179.2 million (about US$132.2 million) compared to the same period a year earlier and the net loss was C$28.5 million (US$21 million) compared to a net loss of C$25.4 million (US$18.7 million).

These poor results were partly due to a ransomware attack that occurred in the fourth quarter of fiscal 2023.  The company said: “Our replenishment capabilities were challenged as a result of the attack, which impacted the assortment available in both the retail and online sales channels for the quarter. Furthermore, the ransomware attack impacted Indigo’s search engine optimization, which led to a weaker online presence and a decrease in online traffic.

“In addition, sales were affected by a challenging macro-economic environment, which l to softened demand both in stores and online. Customers demonstrated increased price sensitivity, noted through positive responses to promotions and a lift of sales during promotional periods.”

Ruis, who was appointed CEO a year ago, will serve as a consultant for two months “to support a smooth transition in leadership,” the Indigo board said. The board also thanked Ruis for “his contributions to the company and wishes him well as he moves on to new challenges in his career.”

 

 

 

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