Even more food glorious food at Fortnum & Mason

Tuesday October 24th 2006

Fortnum & Mason will shortly complete the first phase of its £24 million overhaul that is part of a drive to focus the business more on food and drink as well as entertaining and celebrations in order to reverse the trend of 10 years of flat sales.

Speaking at the Marketing Society Retail Forum Beverley Aspinall, managing director of Fortnum & Mason, says: “Sales have been flat but overheads have risen 70 per cent so it's had a devastating effect on the bottom line with it not making a profit for the last few years.”

With investment from its new owners the overhaul will aim to better focus the business on its key categories. Even though the store has six floors it generates 60 per cent of its sales from only 15 per cent of its floor space, which is concentrated on the food areas on the ground and lower-ground levels.

Another area of focus is F&M's in-store restaurants, which are being upgraded and another two added. Among these is a wine bar that is being introduced on the lower ground floor and will sell many wines by the glass and provide a take-away service.

This better focus on all its key categories and on individual products is not only taking place at the Piccadilly flagship but within its other channels, which Aspinall says are growing: “Seventy per cent of growth is from other channels than the Piccadilly store.”

They include its direct business - that comprises mail order and internet - and corporate business. In addition, overseas is progressing will with Japan, the US and Russia the main areas of growth. Japan is currently involved in a roll out that will see ad many as 20 stores in operation over the next year through a joint venture with Mitsukoshi.

Following the Christmas period work will begin on the second phase of the Piccadilly makeover - that will be predominantly focused on the non-food floors - and will run through to October when F&M will celebrate its 300th anniversary.

This article was published by the Retail Bulletin http://www.theretailbulletin.com on Tuesday October 24th 2006

© 2010 The Retail Bulletin Limited. All rights reserved.