THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
The Papers
RETAIL INSIGHTS
RETAIL SOLUTIONS
• The HR Summit 2019
• AI in Retail Conference 2019
• Omnichannel Futures Conference 2020
• Future of Customer Engagement 2020
ABOUT
CONTACT
SUBSCRIBE FOR FREE
House of Fraser optimistic on future growth despite sales fall

The House of Fraser department store chain has reported that its sales have been impacted by web disruption and a clear-out of its own brand womenswear… View Article

DEPARTMENT STORES

House of Fraser optimistic on future growth despite sales fall

The House of Fraser department store chain has reported that its sales have been impacted by web disruption and a clear-out of its own brand womenswear labels.

In the 26 weeks to 29 July, total group transaction value was £545.8 million while like-for-like sales dropped by 5.2%. Due disruption to its ecommerce business, online sales were down 9.8% in the period.

The company has also reported an EBITDA loss of £8.6 million with gross profit falling to £196.9 million from a previous £207.2 million.

Last year House of Fraser launched a transformation programme which involved a £25 million re-platforming of its ecommerce business. Following the launch, web sales were disrupted as the new platform stabilised. The company said good progress has been made in recovering sale volumes and that it expects to be trading normally by the beginning of the final quarter of the year.

Reporting on progress with its transformation plan, House of Fraser said it has completed the launch of its new womenswear house brand range. In addition, it has embarked on a £18 million investment in its distribution centre to increase capacity, drive operational efficiencies and improve profitability. This is expected to deliver £5 million of efficiency savings in the second half of the year,

The company has also opened a new store for the first time in nine years at Rushden Lakes.

Alex Williamson, the recently appointed chief executive of House of Fraser, said: “House of Fraser has many wonderful qualities and I have high expectations for the business. My observations after a few weeks are that since Sanpower acquired the business in 2014 the primary focus has been on stabilising an enterprise that had been starved of investment for many years.”

“Whether it be refinancing the business, the investment of over £100 million in capital expenditure since the acquisition or a root and branch upgrade of the executive team, much has already been done to prepare us for significant transformation.

“I am excited about what lies ahead for the business and I am optimistic for the future. With the support of Sanpower, we are building the right foundations that position us well to deliver on our ambitions for sustainable profit growth.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
SENIOR-LEVEL FORUM FOR HEADS OF MARKETING, DIGITAL, ECOMMERCE AND CX
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Future of Customer Engagement 2020
Future of Customer Engagement 2020
10 June 2020
Cavendish Conference Centre, London W1G 9DT
The 11th Annual Retail Customer Engagement Conference