Plus-size fashion retailer City Chic says softer consumer demand has impacted the business globally during its first half.

For the 26 weeks to January 1, sales declined 8 per cent to $168.6 million reflecting volatile demand across the group’s markets.

Online sales fell 21 per cent as consumers returned to in-store shopping, while EBITDA reached $3.4 million, in line with last month’s trading update.

By region, Australia and New Zealand sales fell 3 per cent to $79.5 million while its European sales declined 4 per cent to $20.2 million.

The retailer’s business in the Americas reported a decline of 14 per cent to $68.9 million with its mid to lower-market brands impacted by softer consumer demand.

Phil Ryan, CEO and MD of City Chic, described the half as “challenging” and added: “Margins were impacted by promotional activity and input logistics and fulfilment costs from reduced basket sizes and inflation-driven cost increases.”

He added the business is targeting “right-sizing” its operational footprint to support future growth moving forward.

For the first seven weeks of the second half, sales declined 17 per cent compared to the previous corresponding period. The business continues to maintain elevated promotional levels to drive consumer demand.