Strong performance from House of Fraser
Gross Transaction Value up 5.5% to £480.6m and like-for-like sales for the period up 8.4%
Online sales continue ahead of expectations with sales up 150%. There is strong demand from House Brand with sales up 62%. Like for like sales in the first 7 weeks of the second half are up 10.0%.
Over the period, House of Fraser announced it was expanding internationally through a franchise agreement with Retail Arabia. The first store is due to open in Abu Dhabi in 2012 with more planned for the future.
The business is seeing particularly strong growth from the newly opened stores (High Wycombe, Belfast, Bristol, Westfield) and is continuing its refurbishment programme to give the same „look and feel‟ across the portfolio. The benefits of the refurbishment activity are still being seen and the Board is confident of the success of the major programme to be completed in the coming weeks in Glasgow, Manchester, Meadowhall, Worcester, Carlisle and Northampton.
John King, Chief Executive House of Fraser, commented, “We have had a strong performance, despite what can be described as a tough trading environment. Our strategy to enhance our customers shopping experience, through a new „look and feel‟ in stores, the introduction of exciting new brands and the development of our multi-channel approach, is working for us. We are very excited by the opportunities that lie ahead. We clearly are very encouraged by the strong demand for our House Brands from our customers, and particularly pleased with the recent launch of Biba. We expect to see the improving margin impact as these become a larger part of our sales mix. We have a very strong management team in place and we are confident we will continue to deliver in the second half of the year and beyond as we continue our brand and operational developments.”
The Retail Bulletin is organising their 2nd Multichannel Summit, to be held in London February 2nd 2011. The event is sponsored by k3 retail and will look at how retailers can maximize profits, market share and loyalty through cost effective, seamless, integrated multichannel strategies.
If you would like to attend as either a delegate or Networking Partner, go to www.retailbulletinconferences.com/multichannel2011
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