The Iconic’s Email Leak in Ongoing Media Beat-Up

An internal email from local fashion pureplay, The Iconic, has been leaked and is compounding an ongoing media headache for a brand that has recently come under fire for allegedly offshoring part of its customer service – a furore that is predominantly based on misinformation.

According to The Australian, an internal graph of sales results and projections showed that sales are tipped to fall by 56 percent this month compared to January and will remain flat until November. The paper also reports that this email was distributed within The Iconic by Head of Customer Service, Alex Mutton, as evidence to explain planned redundancies among the retailer’s customer service staff.

“In our first year we had very aggressive sales targets and are now moving to a more conservative forecast,” Mutton’s email states.

However, The Iconic denies the figures in the leaked email, claiming they were a result of incorrect calculations and were not meant to have circulated among staff.

“An obviously incorrect graph was circulated to the customer service team and appropriate corrections have since been made,” says Managing Director of The Iconic, Finn Haensel. “In the recently held staff meeting itself, the right graph was shown, reflecting a continuously strong growth trajectory for 2013.”

The Australian reported that Haensel described The Iconic’s pace of growth as expected to slow from the monthly gains of 20 percent or more, which have been in evidence throughout the second half of 2012. He reportedly said that revenue had begun to fall in December, and while sales were expected to fall a further 9 percent in January, it had instead recorded its strongest month ever.

“We are not new to the market any more,” Haensel reportedly told The Australian, “so it’s natural that our month-on-month growth expectation will come down.”

However, since the publication of these details in The Australian, a spokesperson from The Iconic disputes the data published by the newspaper, saying it is inaccurate while not willing to provide revised figures at this stage.

One thought on “The Iconic’s Email Leak in Ongoing Media Beat-Up

  1. If The Iconic do move jobs offshore they aren’t the first Australian business to do so and they wont be the last – as sad as that is for the local economy. Online retailers typically have better margins than traditional retailers due to the efficiencies a pureplay operation provides – so by increasing that potential profit margin further if The Iconic place jobs in lower wage countries makes business sense and potentially further strengthens their online offering.
    I doubt the 56% email and associated graph are real – last week several millions in investment was received by The Iconic – these figures and types of investments don’t go into businesses who report figures used in The Australian article – i expect The iconic will continue to lead the market.


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