// Fenwick CEO John Edgar says that cities other than London can only support one department store
// The retailer is eyeing new stores but wants to be “the only show in town”
Fenwick CEO John Edgar has said the days of having multiple department stores in cities are gone as the market can no longer withstand it.
Edgar told The Telegraph that there are cities where the department store “would love to be – but someone else is already there”.
He said: “The days of two, or three or even more department stores in a city are gone. I don’t think the markets are big enough and I don’t think they ever were. So if another retailer were to come out of a market where we could see an opportunity, I think we’d really seriously consider it.”
The nine-store department store is set to close its Bond Street store, which Edgar revealed was only its fourth largest store, in the face of steep department store competition in the capital.
He said: “Our model is that we want to be the only show in town. You can get things with us that, largely, you can’t get anywhere else in that location.”
The department store boss added that the government’s decision to axe VAT-free shopping has also hit retail in London as tourists can now get the same items for cheaper in Paris or Milan.
“I could be the richest man in the world, but if I’m in Paris and I can get something 20% cheaper there than I can in the UK, then I’ll buy it in Paris.”
He joins a raft of luxury retailers have lashed out at the government’s decision to end VAT-free shopping, which they say is impacting the UK’s appeal to tourists.
Earlier this year, Mulberry revealed it was closing its Bond Street store after trade was hit due to the withdrawal of the policy.
A Mulberry spokesman said at the time: “The lack of VAT-free shopping in the UK has been particularly felt on Bond Street, which has always been an iconic shopping destination for tourists. The decline in visitors has impacted footfall and sales.”
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Fenwick’s eyes new stores
Edgar revealed that Fenwick is actively seeking locations in a number of cities outside of London but declined to tell the newspaper where they were.
“We don’t want lots and lots of locations,” he said. “I think that was part of the problem with some of the department stores which don’t exist anymore, that they just had too many sites, so we want to be very discerning on where we’re choosing and making sure it is absolutely the right location in absolutely the right market.”
In its last financial year to 28 January 2022, Fenwick’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 as it moved away from discounting.
Edgar revealed to The Telegraph that the department store is in talks about lowering the prices of some of its products in contrast to rivals that had hiked prices.
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