Sales dip in transitional year for N Brown
N BROWN, the multi-channel retailer specialising in larger sizes said first half sales have dipped in what it describes as a “transitional year”, which has seen it focus on becoming more profitable and more relevant to customers.
The Manchester company, which is best known for brands such as JD Williams, Simply Be and Jacamo, said despite the 0.6% decrease in sales in the 26 weeks to August 30, it is confident of meeting full-year targets.
Among the measures introduced by chief executive Angela Spindler is to change the timimgs of marketing activity around product launches, with a rephasing towards the second half.
Mrs Spindler said: “Would we have liked the sales number to be better? Yes, of course, but these were planned changes to the way we operate and getting ourselves in better shape to deleiver higher growth in the future.
“The combined effect of changes to our category focus, the planned reduction in credit sales from high risk areas and the reduction and re-phasing of our mailing programme has reduced revenues in the half, however we have improved the quality and profitability of our sales.
“I am pleased with progress so far; the team is implementing the plan effectively, delivering our differentiated offer for customers and continuing N Brown’s record of strong financial performance. With a strong activity plan for the second half we are on track to deliver our full year forecast.”
On Wednesday N Brown will open its eleventh and largest store on Oxford Street in London. Cricketer turned TV personality Freddie Flintoff, an ambassador for the group’s Jacamo menswear brand, is opening the store.
Angela Spindler said: “It’s a milestone for us, we are very pleased with the store. The reason we are opening the store is not just to grow our store portfolio buy to maximise our online proposition by providing customers with a touchpoint with the brands.”
She said new brand ambassadors, Lorraine Kelly for JD Williams and Kelly Brook for Simply Be, had attracted a lot of attention to the business in terms of positive PR.
Other headline figures for the half year include: JD Williams brand sales down 3% in the half but new customers up 20% for this season to date; sales of young brands Simply Be and Jacamo fashion ranges were up 4% and 10% respectively; store like-for-like sales were strong at +17%; the fledgling US business is doing well with demand for the product up 16%.
The company said three new combined Jacamo/Simply Be stores would be open by the end of 2014, taking the portfolio to 14.
