Farfetch owns no shops or even an inventory of the clothes, shoes and handbags it sells

Luxury fashion website Farfetch sees losses widen to £34m

Farfetch owns no shops or even an inventory of the clothes, shoes and handbags it sells

Farfetch owns no shops or even an inventory of the clothes, shoes and handbags it sells

Expansion has come at a cost for luxury fashion website Farfetch.

Losses at the British firm widened to £34million in 2016 from £28.7million the year before, as investment in technology and staff took its toll.

Farfetch operates like Deliveroo for fashion, but owns no shops or even an inventory of the clothes, shoes and handbags it sells.

It is facing increased competition from luxury rivals Matchesfashion.com and Yoox Net-a-Porter which has invested £442million in new technology to improve its website.

It said sales in the year increased to £151million from £87million but warned business could be hit as more retailers move online.

The firm was founded in 2007 by Portuguese entrepreneur Jose Neves and sells products from over 700 boutiques and brands around the world.

Shoppers can search for products that are sold out in their own country and buy from an unknown boutique abroad.

Farfetch’s business model has proven attractive to investors, with Asian powerhouse JD.com snapping up a £314million stake in June and it is said to be gearing up for a £4billion stock market float.

Posted on; DailyMail>>

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