New House of Fraser management boosts sales and profits

House of Fraser has delivered a healthy uplift in sales and profits, as the changes made by its new management team bear fruit despite tough trading conditions on the high street.

The 61-department store chain, which was acquired by a consortium led by the Icelandic investment group Baugur in November 2006, delivered total sales up 2.9 per cent for the 26 weeks to 26 July.

The figures suggest House of Fraser is holding its own on the high street, against rivals such as Selfridges and John Lewis, but it did not provide like-for-like sales, based on stores more than a year old, and its sales were boosted by two stores opening in Belfast and High Wycombe in March. House of Fraser said that its underlying earnings (Ebitda) were up by more than 30 per cent in the past 12 months.

Robert Clark, a senior partner at the market research firm Retail Knowledge Bank, said: "I suspect it masks a small fall in like-for-like sales. But the profit figure is reasonable and this shows they are watching costs very carefully."

House of Fraser said the uplift in profits and sales had been driven by refurbished stores, improved stock management, the introduction of new products and high-margin private-label products, including its Linea line, which has been extended into handbags, accessories and home. It said it had reduced stock levels by 5 per cent and cut back on poor-selling stock significantly. House of Fraser said that sales at its 13 refurbished stores are 8 per cent ahead of the rest of the chain.

Don McCarthy, House of Fraser's chairman, said: "Our three-year investment programme is well under way, and we are delighted by the performance of our new stores which were opened earlier this year in both Belfast and High Wycombe."

House of Fraser, whose chief executive is John King, said it had invested £150m in the business since it was bought by Highland Acquisitions in November 2006 and that it had repaid or cancelled £110m of the original debt since then.

The department store chain, which generates annual sales in excess of £1.25bn, is to open two more stores in Bristol next month and London's White City in October.

PROMOTED VIDEO
Arts and Entertainment
Judi Dench appeared at the Hay Festival to perform excerpts from Shakespearean plays
tvJudi Dench and Hugh Bonneville join Benedict Cumberbatch in BBC Shakespeare adaptations
Life and Style
fashion David Beckham fronts adverts for his underwear collection
Arts and Entertainment
Exhibition at the Centre Pompidou in Metz - 23 May 2012
art
News
i100Most young people can't
Sport
Is this how Mario Balotelli will cruise into Liverpool?
football
Arts and Entertainment
Alfred Molina, left, and John Lithgow in a scene from 'Love Is Strange'
film
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Head of Service and Support (Financial Services, ITIL, ORC, TT)

£75000 per annum: Harrington Starr: Head of Service and Support (Financial Ser...

Calypso Developer

£700 per day: Harrington Starr: Calypso Developer Java, Calypso, J2EE, JAXB, ...

Service Delivery Manager - ITIL / ServiceNow / Derivatives

£60000 - £75000 per annum: Harrington Starr: A leading Financial Services orga...

Senior Quantitative Developer

£700 per day: Harrington Starr: Quantitative Developer C++, Python, STL, R, PD...

Day In a Page

Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

eBay's enduring appeal

The online auction site is still the UK's most popular e-commerce site
Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

'Lack of ethnic minority and black faces on TV is weird'

Culture Minister Ed Vaizey calls for immediate action to address the problem
Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

Magic circles: Artist Olafur Eliasson

Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

Josephine Dickinson: 'How I discovered a new world of sound'

After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

Greggs gives lesson in crisis management

After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

Matthew McConaughey sings the praises of bumbags

Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
7 best quadcopters and drones

Flying fun: 7 best quadcopters and drones

From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
Joey Barton: ‘I’ve been guilty of getting a bit irate’

Joey Barton: ‘I’ve been guilty of getting a bit irate’

The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
Andy Murray: I quit while I’m ahead too often

Andy Murray: I quit while I’m ahead too often

British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home