Fenwick has returned to profit, boosted by the sale of its New Bond Street store for £430m, Retail Week reports.
The sale of the department store retailer’s 130-year old flagship last December enabled the business to report pre-tax profits of £57.1m last year, compared to a loss of £5.2m a year earlier.
Gross sales rose 31% to £315m in the year to January 28, 2023, as shoppers headed back into to stores, while online sales increased 51%.
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Chief executive John Edgar told Retail Week the business is well positioned to advance its transformation strategy, which includes improving the in-store customer experience and making significant investments in the digital realm, an area that had been previously overlooked.
He told the title: “Last year was one of the most important in the history of Fenwick. [The Bond Street disposal] has allowed us to continue our transformation on an even more sound footing.
“It’s allowed us to step up investment in all our stores, particularly Newcastle, and invest in digital, which is the growth driver.”
While Edgar said trading in the current financial year had been “up and down”, in large part because of unexpected weather conditions he added that the business benefited from a focus on full-price sales alongside better inventory position, meaning the retailer is not holding a mid-season sale this year which would typically been running now.
On the nearing Christmas season Edgar said he was optimistic about trading and confirmed that the business has no plans to close any more stores, instead saying he’d like to add one or two more new ones in ‘the right places’.
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