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Sales flat at Fortnum & Mason
Fall in international business as strategy changes
A change of focus in its international strategy has hit sales growth at upmarket retailer Fortnum & Mason.
For the year to July 11 2004, the privately owned business will report roughly flat sales of £39.6m, compared to £39.4m in 2003, with pre-tax profits of £351,000 down from £638,000 in 2003.UK like-for-like UK sales grew by a healthy 6.5 per
The aim is to maximise Fortnum & Mason's brand impact, control and penetration in the lucrative global luxury market rather than supplying products through local wholesale distributors. As a result, international sales were down £2.1m, with an operating loss of £387,000.
In the current financial year, sales are currently running below last year's levels. For the 25 weeks to January 2, UK sales are 3.6 per cent down, with increased customer spend not fully compensating for reduced footfall.
Combined with recently announced changes in the flagship Piccadilly store, including the closure of the menswear, ladies clothing and the antiques department, as well as increased investment in marketing and brand packaging, means the company expects a loss for the full financial year.
Fortnum & Mason chairman Jana Khayat said: "As a private company we are in the fortunate position of being able to invest in our future which is what we have been doing in the current year.
"Approaching our 300th anniversary in 2007 we are focusing on our core departments in the areas of marketing and brand packaging ensuring we remain as irreplaceable to our customers in the future as we have in the past."
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