Frasers Group may close more House of Fraser stores
Frasers Group has warned that it may be closing a further raft of House of Fraser department stores as it reported that its full year group pre-tax profit declined by 19.9% to £143,5 million.
In the year to 26 April, group revenue rose by 6.9% to £3.95 billion but on a currency neutral basis and when new acquisitions were excluded, revenue decreased by 12.6%.
The group said the year had been the most challenging in its history due to the uncertainty surrounding Brexit and the impact of Covid-19. However, it said a semblance of normality is now returning as virtually all of its retail stores are now fully open.after the easing of Covid-19 lockdown restrictions.
Frasers Group began the year with 53 House of Fraser stores in the UK but subsequently closed five. The group now says it expects to close further stores, but the final number will depend on the outcome of lease negotiations with landlords.
Looking ahead, Frasers Group said: “The Covid-19 impact has created uncertainty and we consider that it will be some time before the country and indeed the world recovers. However, Frasers Group itself has always taken a long term approach to its strategy and this has helped us, and will continue to help us, through these unprecedented times. We will continue with the elevation strategy and the expansion of the new store format supported by our talented and loyal staff and we consider we are well placed for the future.”
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