North East luxury department store chain Fenwick has narrowed its losses for a second year running while challenges continue to bite into the 海角视频 retail industry.
The company – the largest family-owned group of department stores in the 海角视频 – is toasting a significant improvement in its financial performance in the year ended January 2025, against the backdrop of ongoing, testing conditions on the High Street.
Fenwick operates eight regional department stores including its flagship store in Newcastle’s Northumberland Street, Kingston, Brent Cross, Colchester, Canterbury, Tunbridge Wells, Bracknell and York, as well its online business Fenwick.co.uk.
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Despite troubling times in the retail sector, recent years have seen Fenwick continue to invest in its stores, using the proceeds of the sale of its London Bond Street store – sold in 2022 in a £430m deal – on strategic investments within its portfolio, including Newcastle.
Turnover fell from £184.2m to £177m, but its operating loss was shortened from £52.7m to £39m, and its overall loss was £35.5m, an improvement on the previous year’s figure of £51.7m.
Fenwick, which employees around 1,555 people, said it saw particularly strong sales growth in the second half of the year, and it also made operational cost savings of £11.2m. The 2024 figures also include sales and associated costs for its Bond Street store, which closed its doors that was sold and ceased trading in February 2024.
A note within the accounts said: “The British retail sector continues to remain challenging. The outlook continues to remain difficult with the global backdrop of Tariffs and potential trade wars. Wars in Europe and the Middle East added to market uncertainty. Mortgage rates continued to remain high, however bank base rate is now expected to fall following two years of rises.
“Fenwick offers customers in store and online a well curated, enticing product range across fashion, beauty and lifestyle and in its stores provides an engaging retail environment and renowned hospitality in its popular restaurants.
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“Throughout the year the board and executive team continued to build on Fenwick’s long-standing history, refining and evolving Fenwick’s position as the largest regional premium department store group in the 海角视频. The Group focussed on increasing the efficiency of its retail operating platform and supply chain, controlling costs and ensuring high levels of customer service and satisfaction.”
“Trading was challenging with the cost-of-living crisis and a changing retail environment. After a difficult first half where there was a lot of discounting in the market, the second six months of 2024 the business experienced strong single digit growth +7.6% together with strong margin improvement.”
Significantly, the company also repaid its £60m loan facility in August 2024, leaving it with a debt-free balance sheet of £84.9m in cash reserves available.
Highlights of the financial year included a number of brand partnerships, including the Newcastle United Football Club premium retail partnership, the Barbour Cafe launch in Newcastle – a pop-up which was extended by a further three months on the back of its popularity – and the launch of its ‘Tastemakers’ media campaign.
The company also completed significant infrastructure investments, including the new online platform migration and the opening of the £40m Newcastle Beauty Hall in October 2024 – the 海角视频’s largest beauty hall outside of London at the time of opening.
It says the momentum has carried into 2025, during which Fenwick has seen plenty of exciting activity, including the launch of Greggs pub The Golden Flake and the recent launch of MyFenwick, its first-ever customer loyalty card scheme.
A new executive team was put in place during the year after chair, Simon Calver, stepped down at the end of his term in March and John Edgar, CEO, also left the business.
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Sian Westerman, who had previously been a non-executive member of the board, was appointed chair and Mia Fenwick was appointed executive deputy chair, while other new arrivals included chief people officer Susan Gordon and chief trading officer Joseph Wright.
Ms Westerman said: “These results mark important progress as we continue to reshape the business for long-term sustainability. The strategic changes underway are beginning to take effect, and the Board remains confident in the direction being taken. While the retail environment remains challenging, Fenwick is becoming a more focused, agile business with a clear plan for profitable growth.”
Mia Fenwick added: “We’re evolving Fenwick to meet the expectations of a modern customer while staying true to what makes our brand distinctive. From digital improvements to reimagining the store experience, the strategic decisions we’ve made, combined with our operational transformation, are delivering real momentum. This was especially evident in the second half of 2024 and has continued into 2025. There’s more to do, but we’re on the right track — and we’re excited about the future.”
During the year the company made charitable donations totalling £85,000.