N Brown aims for bigger presence on high street with store roll-out scheme
Angela Spindler, the new chief executive of catalogue and online fashion group N Brown, unveiled plans to expand the firm’s store estate to around 25 after a successful trial with seven shops, including six dual fascia Simply Be/Jacamo stores.
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Hide AdThe group is hoping the move will increase its brand awareness as well as further boost its online sales by offering order collection points in prime retail locations.
Manchester-based N Brown has also launched a click and collect service across 3,000 local convenience stores this month to boost pre-Christmas trade, building on a 13 per cent hike in half-year internet sales.
The online sales rise helped overall revenues increase 8 per cent to £409.6m in the six months to August 31, with underlying pre-tax profits 7.1 per cent ahead at £45m.
Like-for-like sales lifted 7.8 per cent and have continued at the same rate so far in the second half, up 8 per cent in the five weeks to October 5.
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Hide AdMs Spindler, the former managing director of Debenhams, who joined in July from discount chain The Original Factory Shop, said: “I have spent my first three months looking at the business in detail and I am extremely excited by what I have seen.”
The trial stores – the first of which opened in September 2011 – lost £1m in the half-year, but delivered revenues of £3.4m.
The group added there has been a positive impact of the stores in local catchment areas, with brand awareness up 10 per cent and web sales 5 per cent higher on Simply Be and 3 per cent higher on Jacamo.
Retail analysts at Shore Capital Stockbrokers said: “We believe N Brown can become a highly successful and valued international multi-channel retailer of apparel, footwear and accessories, especially in the outsize market.”
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Hide AdBut shares fell more than 6 per cent yesterday, having risen more than 80 per cent in the past year, as N Brown revealed an increase in bad debts among shoppers buying on credit after a concerted push to attract new customers in recent months.