Perfume Shop scents further growth
Fragrance chain performs strongly for Merchant Retail
January 15 2004
A strong Christmas performance at the Perfume Shop chain helped to compensate for a sales decline at the department stores operated by parent company Merchant Retail.
In the seven weeks to January 3 Perfume Shop like-for-like sales increased 11 per cent. Across the 40 weeks of the year to date, total sales for the chain are up by 23 per cent, with like-for-likes up 12 per cent.
Group sales for the seven weeks to January 3 were up 14 per cent, and 11 per cent across the year so far.
Perfume Shop accounts for more than 75 per cent of Merchant Retail’s turnover. With 97 branches trading, including 12 new stores in the UK and two in Dublin opened over the year, the company said that its goal of 20 per cent share of the UK perfume market can be “achieved in the foreseeable future.” Four further branches are confirmed for 2004, with negotiations in hand for others.
Northern department and discount store group Joplings saw like-for-like sales fall 9 per cent in the Christmas period, with a 5 per cent decline across the year to date. The De Gruchy store in Jersey has seen Christmas like-for-likes fall 8 per cent, with a 4 per cent fall across the year so far.
Merchant Retail said its department stores “have fared less well in what was generally accepted as difficult trading on the high street”. The company said that despite most department store discounting from the start of November, customers “continued to delay purchases in the knowledge that the traditional January sales period may offer even further value. “Joplings was no exception to these circumstances and its performance can only be considered disappointing”.
De Gruchy was similarly affected as Jersey experienced the same challenging spending environment.
Merchant Retail said: “A strong performance again by The Perfume Shop and still significant contributions from our department store business provide us with continuing confidence for the future. As the important sales in the Christmas and January periods are now almost complete we again anticipate reporting significant growth for the Group, with full year results in line with market expectations.”
