// Monsoon is set to open 22 more new stores in the current financial year after trading recovers post-pandemic
// The retailer currently has 154 UK stores split between Monsoon and sister brand Accessorize
Monsoon is set to open more stores next year after a recovery in profitability as shoppers return to the high street.
The womens fashion retailer, which was bought out of administration in June 2020 by founder Peter Simon in a pre-pack deal, currently has 154 UK stores split between Monsoon and sister brand Accessorize, down from 230 at the time it went into administration.
It has opened 19 stores over the past year and now plans to open an additional 22 in its current financial year.
Stowe, who is keen on locations in well-heeled regional towns and cities told the FT, “we could probably get up to 200 stores in the UK if we wanted to”.
He added that the changes to business rates next year could make opening stores “more attractive”.
The business will continue to expand in Europe and the Middle East, including the opening of multiple new Accessorize stores in key European airport locations in Italy, Germany and Switzerland.
The expansion comes as the retailer posted soaring sales and profits as its turnaround strategy continues to pay off.
Monsoon’s turnaround is focused on product and brand renewal, digital transformation, retail portfolio renewal, international expansion and cost control.
This helped group sales jumped 43% to £258 million in the year to 31 August with retail like-for-likes rocketing 105% with Accessorize and its travel business star performers.
EBITDA more than doubled for the year to £24.4 million as the business’ “lower and more flexible cost base” helped margin jump by 5.3% points.
The group, including its Middle-East venture, ended the fiscal year with no debt and £22 million of cash.
Online sales continued their strong growth, led by the 22% jump at Monsoon, with ecommerce now accounting for 45% of UK group sales.
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Monsoon chief executive Nick Stowe said that growth had continued into its current year despite the challenging trading environment.
He said: “We’re entering a clearly more challenging consumer environment as the economy slows, and we’re taking action to control our costs and capital spend.
“But the business now has a great foundation, we’ve performed well and grown in the first quarter of our new fiscal year, and we remain positive about the year ahead.”
Stowe said over the past year it had made “strong progress” on its turnaround “moving from the earlier restructuring phase to a focus on growth”.
“We’ve continued Monsoon’s digital transformation with a new website design, better digital marketing, and the development of ‘Monsoon Bazaar’, our marketplace for like-minded, sustainable third-party brands,” he said.
“We’ve also opened more of our boutique stores and have more planned in the year ahead.”
Stowe also called out Accessorize, which he said was performing “tremendously”, and East, the brand it bought out of administration in 2018, which he said was a “gem” and had doubled in size.
Monsoon founder and chairman Peter Simon added: “We took a leap of faith in 2020 to rescue Monsoon and Accessorize at the height of the pandemic.
“Our team has worked incredibly hard since then, first to save the business, then to rebuild its profitability, and now to write a new chapter for our iconic brands.
“We worked through the challenges of the pandemic, then the challenges of the energy shock, and now we’re facing into the challenges of a recession. But the business is well-prepared after all the work we’ve done.”
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