The Peacock Group, which owns and runs the Peacocks, bonmarché and Fragrance Shop stores across the UK, has defied the retail gloom to post higher profits and sales for the year.
The turnover increased by 11.8% to £548 million while pre-tax profit increased by 8% to £35 million. These results have prompted the group to announce the opening of 80 more stores, which would give employment to 800 people. The Cardiff based retailer already has 415 Peacock stores, 350 bonmarché stores and 45 Fragrance Shop stores.
As per company officials, consumers are still going for discounted and value offers, though shying away from expensive fashion brands of High Street. This being the mainstay of Peacock stores has worked to its advantage and the company is positive of the trend continuing.
According to Richard Kirk, Chief Executive of the company, “It is tough out there on the high street, but it's all a matter of changing your offer and making sure that appeals to the consumer and what they want.”
Within the group though, while Peacock sales grew by 9.3%, that of bonmarché, which caters to clothing for women aged 45 and above, came down by 7.1%. This is attributed to a shift in women in this age group also looking for more fashionable clothing as against the more traditional as sold by bonmarché.
“Bonmarché now has a clear direction, under a strengthened management team, and we believe that this will result in a sustained improvement in its performance over the medium term,” said Mr. Kirk. This statement comes in the light of a major revamp planned for the chain after intense consumer research.
The Peacock share moved up by 2.75 pence after the news of good results. The company is expected to pay a second-half dividend of 5.7 pence a share taking the yearly dividend to 8.7 pence.
Peacock feels safe and in a position to fend away the market downtrend, as Finance Director Keith Bryant said: “When people tighten their purse strings they look increasingly for value offers. Peacock is incredibly well set to take advantage of any downturn in the economy.”
Posted
on : Wed, 01 Jun 2005 11:25 GMT | Business News
By : Mark Richardson
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