Peacocks pledges Bonmarche revamp
Core business performing well
Peacocks has warned that a recovery programme for its underperforming Bonmarche chain will take time, while its core Peacock business continues to perform well.
In a pre close trading statement, Peacocks said the group is performing well “in a trading environment increasingly characterised by slowing consumer confidence”. Peacocks and the Fragrance Shop continue to perform strongly, while Bonmarche is rolling out new ‘classic’ and improved ‘contemporary’ ranges to improve performance.
Across the 13 weeks to April 2, total group sales increased by 10.8 per cent, with group like-for-likes up 4.6 per cent. Across the full year, total group sales increased by 11.9 per cent, with like-for-likes up 3.6 per cent.
By division, Peacocks achieved strong growth, with total sales up 12.7 per cent and like-for-likes up 9.3 per cent across the quarter. For the full year, the chain saw total sales growth of 14.9 per cent, and like-for like growth of 9.3 per cent.
While sales growth was ‘slightly flattered’ by the timing of Easter, delaying the mid-season sale until after the year end, an increasing focus on fashion, backed by store refurbs, has driven sales. An improved childrenswear range launched for the spring/summer season has bee well received initially.
Across the quarter, 32 Peacocks stores were refitted and four opened, with 80 per cent of the 429 UK stores now trading in the new format. There are also now 11 Pecocks franchise stores trading in the Middle East and Turkey.
[img r]bonmarchestore.jpg[/img]At Bonmarche, total sales grew by 3.9 per cent across the quarter, with a like-for-like fall of 4.7 per cent . In full year, total sales grew by 2.9 per cent, with like-for likes down 7.1 per cent. growth of 9/3 per cent.
During the quarter, eight new stores were opened and one store closed, bringing the chain to 350 stores. Peacock said Bonmarche’s trading remains ‘unsatisfactory’, but new ranges drove and an improving trend over the quarter. The group warned it is ‘too early’ to assess whether the initiatives introduced will lead to a sustained recovery in performance.
At Fragrance Shop, acquired last year, total sales grew by 82.2 per cent across the quarter after a strong opening prgramme which saw new 21 stores opend during the financial year, bringing the total to 50. Like-for-liks sales grew by a 4.2 per cent in the quarter and by 5.8 per cent across the full year.
Richard Kirk, group chief executive, said: “Good progress was maintained across the Group, with further strong performances seen at Peacocks and the Fragrance Shop.
“Strategic improvements at Bonmarche are being put in place, although the benefits are more likely to be seen in the medium term. We are confident the group is well placed to meet market expectations for the year just ended.”
