Sweet smell of success for The Fragrance Shop
The Fragrance Shop has reported net annual sales of £121m, underpinned by a strong like-for-like performance of 6%.
It said total sales rose by 14% during a bumper trading year, boosted by new product development (NPD) and blockbuster launches from brands such as CHANEL, Jean Paul Gaultier and Emporio Armani.
The Trafford Park-based business said luxury continues to boost sales with increased distribution on Tom Ford and Dior among fragrance driving sales.
An ongoing expansion in its store portfolio fuelled further growth, with the retailer opening 33 new stores in the last trading year, taking its total to 214 shops.
In addition, the firm’s online operation continues to increase in popularity with year-on-year ecommerce sales rising 27%.
Underlying group profitability (EBITDA) prior to exceptional items rose by 9.2% to £16.5m.
Chief executive Sanjay Vadera said: “We are delighted to have achieved another outstanding year, given the challenging economic climate.
“Our growth highlights the fragrance sector’s resilience with NPD and blockbuster launches from brands such as Scandal, CHANEL Gabrielle, Jean Paul Gaultier and Emporio Armani Stronger With You/Because It’s You by far the top performing launches.
“In the last trading year alone, we opened 33 stores and we will continue to expand our store portfolio.
“The customer is at the heart of everything we do and we are always evolving our customer strategy to ensure we continue to delight and exceed their expectations in the retail landscape.”
Customer initiatives have proved extremely popular, too, including the company’s scentaddict subscription service where customers can try new scents without splashing the cash and claim their £12 subscription fee back on a largest size purchase.
The retailer recently increased their database sign ups to more than four million customers.
The Fragrance Shop was founded in 1995 with a single store.
It now employs just under 1,400 people experiencing significant growth as a multichannel retailer through its e-commerce website, 214 stores and distribution facility in Manchester.
