North East department store chain Fenwick has narrowed its losses during a challenging year for the retail sector.
The historic retailer, which trades from eight Ƶ stores including its flagship shop on Newcastle’s Northumberland Street, has invested heavily across the business after selling off its Bond Street store in London for £430m.
Now accounts filed for Fenwick Ltd for the year ended January 2024 have outlined how the company is seeking to differentiate from its rivals while moving to return to profitability, after posting a loss for the financial year of £39.5m, down from £70.4m. Operating losses also narrowed from £68.1m to £45.2m on turnover of £180.4m, down from the previous year’s £193.2m. Employee numbers, meanwhile dropped, from 1,644 to 1,569.
A report within the Fenwick Ltd accounts said: “The market environment continued to provide a challenging backdrop to sales. The effects of the war in Ukraine continued to be felt and to impact upon supply chain and costs. Mortgage rates continued to be high, as did inflation, contributing further to the ongoing effects of the cost-of-living crisis. In the last quarter sales were further impacted by heavy discounting by competitors. This has impacted the company’s ability to limit discounting and contain costs relative to sales.”
Fenwick’s cash balance increased by £133m to £177.3m, supported by the disposal of the London store – giving it funds to invest in its city centre locations, including the Newcastle flagship store, and in its supply chain to support its online presence. Investments have included the recently completion of the largest Ƶ beauty hall outside of the capital in Newcastle
It added: “We will continue to differentiate ourselves from the competition by our investments in service and hospitality, in both the physical and digital estate and in our people and products. Our masterplan for Newcastle continues and will complete in the coming months. The company will continue selectively to invest in its stores, where clear results can be seen which will improve Fenwick’s presence in key locations.”
The company also hailed the success of last year’s Greggs X Fenwick Bistro, where festive bakes, steak bakes and sausage rolls were reimagined by Fenwick’s chefs and delivered to thousands of diners beneath silver cloches. The firm revealed it is further developing its food and drink offerings – a move which has recently seen the opening of a Barbour Tea and Toasties cafe, an extended pop-up by Michelin-starred Hyem, a new Mother Mercy cocktail bar and a classic tearoom called Fred’s on the lower ground floor.
The company said it is continuing to develop its Fenwick at Home range, its food own-label products, and also continuing to invest in its own-label restaurant offers, which include Fuego and Mason & Rye, and that it continues “to explore exciting and engaging food and beverage offerings, such as the noteworthy Greggs silver service partnership in Newcastle before Christmas”.
Meanwhile, Fenwick has also enlisted two new senior executives to its leadership team. Susan Gordon has been appointed as its new chief people officer and joins from Hush, while Joseph Wright has been named as its new chief trading officer, joining the company from lingerie retailer Ann Summers.
Chair Sian Westerman said: “At the heart of Fenwick are our customers and our people. That is why I am delighted that Susan Gordon and Joseph Wright will be joining the Fenwick executive team in November, in the new roles of chief people officer and chief trading officer respectively. This momentum has been as a result of the significant investment that has taken place following the sale of the Bond Street store to strengthen our business model and expand our omnichannel approach online and in-store.”
Fenwick is currently searching for a new CEO after it was announced that the executive who had previously been appointed to the role would no longer be taking up the post. Former Harrods executive Nigel Blow has said the company had stopped him taking up the role.
