North East department store chain Fenwick is back in the black, buoyed by online sales, rising footfall and a £430m deal to sell its Mayfair store.
The luxury retailer – which recently revealed plans to redevelop the Northumberland Street frontage on its flagship Newcastle shop – has issued accounts showing turnover rose from £153.7m to £199.7m in the year ended January 2023, while gross sales rose 31% to £315m. Online sales also increased 51% following significant investment in the company’s digital offering.
Most significantly, last year’s pre-tax loss of £5.22m was converted to profit of £57.1m and its operating loss of £4.5m became operating profit of £63.4m, a figured aided by the sale of its 130-year-old New Bond Street store to developers.
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Fenwick said the increases in the year – the firm’s 140th trading anniversary – had been driven by shoppers heading back into its eight 海角视频 stores following the pandemic, where they have looked to spend more time in store at the company’s cafes and restaurants.
In the accounts, company secretary Jill Anders describes a year of progress and challenges, with the firm continuing to suffer from the aftershock to consumer confidence and the adverse impact on supply chains of the Omicron variant, especially in the first quarter of the year. The second half of the year saw the combined effect of the war in the Ukraine and the cost-of-living crisis dampen customer demand.
She said: “The board and the executive team continue to build on its long standing history, redefining and evolving Fenwick’s position as the largest regional premium department store in the 海角视频. The group is continuing to invest in its stores whilst developing its burgeoning online platform.
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“Fenwick recognises the importance of its stores to the local community in which they are located and their unique and often exclusive position in providing a curated range of desirable premium brands to those communities – increasingly supported by an online offer available to all. Although online will represent the largest growth area for the business, bricks and mortar retail will remain the dominant contributor to sales for the foreseeable future and we believe it is important to grow and invest in both channels.
“The new business model implemented over the last two years, focussing on full price sell-through, fewer and bolder discount events, and the continued introduction of new premium brands has helped to further establish Fenwick in a unique position on the high street, where it trades as the main retail premium offer in the town.”
Fenwick is investing £40m into its flagship Newcastle store amid aims to create a next generation store for the North East, while also cementing its commitment to the city’s development and local economy. Changes brought in so far have included opening up two new atria in the building, a new Mother Mercy cocktail bar in the basement and the renovation of the beauty hall. Fenwick’s Christmas shop is now open and its window display will be revealed on November 5.