// Fenwick more than halved its operating losses from £45m to £18.3m in its year to 28 January
// CEO John Edgar said it had “got off the discounting drug”, which had boosted its performance
Department store Fenwick has grown sales and cut losses over the last year as it moved away from discounting.
The retailer’s gross sales surged 71% to £240 million in the year to 28 January as operating losses were more than halved from £45 million to £18.3 million.
Meanwhile, pre-tax losses were cut by 95% from a £112 million to £5.2 million over the year.
Fenwick chief executive John Edgar told Retail Week that its focus on full-price trading had put it in a “much better place”.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
He said: “Historically there has been too much of a race to the bottom. During the pandemic, we got ourselves off that drug of discounts. The pandemic gave us the opportunity to change the model significantly, to do a big reset.”
Sales in Fenwick’s stores rebounded in the second half of its financial year, after Covid restrictions were lifted.
Fenwick said that its strategy of combining premium products and a tailored shopping services with a focus on its regional stores helped drive the business improvement.
He said: “We are cementing Fenwick’s position as the UK’s leading multi-channel premium department store – driving innovation across our edit and delivering unique experiences through Fenwick’s trademark hospitality.
“This is what underpinned a stable business recovery last year, leading to significantly increased sales and margin, and this is what will continue to drive us forward as we invest for the future of our stores and communities.”
The retailer said it was now set on “a path to future investment and expansion”.
In its current year, Fenwick will invest £40 million into its Newcastle flagship, and is focused is bringing new exclusive brands to the business.
In 2022, Fenwick has introduced more than 100 brands to the business such as Marni, 3.1 Phillip Lim, Proenza Schouler White Label, Kitri and Lululemon.
Click here to sign up to Retail Gazette‘s free daily email newsletter
