Fenwick’s boss says the department store chain is well set for the key Christmas period despite a “lumpy” year for the retail sector.
Chief executive John Edgar gave an interview to the BBC as figures released from the British Retail Consortium suggested shoppers were holding back on purchases and hoping for bargains as high inflation and increasing mortgage costs restricted their spending power.
Fenwick has just launched its famous Newcastle window display and Mr Edgar said the company’s online and in-store operations had been performing well in the face of an “up and down” year. Last month the company released accounts which showed a return to profit after a number of difficult years, helped in part by a major deal to sell its store in London.
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Speaking to the BBC’s Today programme, Mr Edgar said: “Our online business is still growing. The nine stores that we have around the 海角视频 are performing well but obviously we’d like them to perform better. The year generally has been up and down, driven by many factors.
“We haven’t really addressed pricing per se, a lot of our pricing is dictated by recommended retail price. The product we sell will be the same price in every retailer. But we’ve chosen not to discount where others have - our stocks have been in good control and we didn’t do a mid-season sale. We feel that our stores are well set up, looking great and ready for the Christmas run-up.”
Mr Edgar said Fenwick was a “very different business” to the one that existed before his arrival in 2018, with that time having seen the launch of the company’s website and the closure of a number of stores. He said that providing a good in-store experience from knowledgeable staff was a key part of the company’s offering.
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Last month Fenwick released accounts which showed that turnover rose from £153.7m to £199.7m in the year ended January 2023, while gross sales rose 31% to £315m. The company reported an operating profit of £63.4m and has recently announced plans to redevelop the frontage of its Northumberland Street store.
Monthly figures released today by the British Retail Consortium show total 海角视频 retail sales increased by 2.5% in October, with sales volumes likely to be falling due to higher rates of inflation.
Chief executive Helen Dickinson said: “Retail sales growth slowed as high mortgage and rental costs further shook consumer confidence. Many households are also delaying their Christmas spending in the hopes they can grab a bargain in the upcoming Black Friday sales.
“The cost-of-living squeeze meant more was spent on lower-price indulgences, such as beauty products – the so-called ‘Lipstick Effect’. Meanwhile, the arrival of some colder weather helped to boost fashion sales, particularly for outdoor wear.
“Retailers continue to invest in lowering prices and streamlining their operations, part of their commitment to delivering an affordable Christmas for their customers. But this is put at risk by the £470m-per-year rise in business rates facing retailers next year. The Chancellor must freeze rates in the upcoming Autumn Statement, to prevent extra cost pressure, pushing up prices for struggling consumers.”