N Brown to open more Simply Be shops

HOME shopping group N Brown, which specialises in ‘plus-sizes’ announced a 2% increase in like-for-like sales for the 19 weeks to last Saturday and said it is planning to open another five Simply Be shops this year.

Total sales including the contribution from the first two Simply Be stores at The Rock development in Bury and at Liverpool One, was 2.3%.

The Manchester-based group, which also owns Figleaves, High and Mighty, JD Williams and Jacamo, said trading was “flat” in October and November but had picked up last month as Christmas approached.

Margins were dented though as the group felt it had to embark on more promotions to drive sales growth. As a result gross margins will be “almost 1% down on last year’s level,” the company said.

The trend of increased online sales had continued with a 9% uplift in the period, meaning that web sales now make up nearly 50% of the total.

Regarding the Simply Be stores, N Brown said they had been “well received” and had also mostly attracted new customers “thereby expanding the brand’s reach in plus size fashion”.

N Brown said its financial position was strong and that the board believes that the company can meet market expectations for the year to March 3, as long as there is a “reasonable reaction” from customers to the new spring catalogues which are being dispatched this month and next.

The trading statement added: “Looking further into 2012 we do not expect life to be easy for our customers but the expected reduction in the rate of inflation, especially for clothing and footwear, should help to prevent the financial pressure on them rising further.

“We will continue to drive for growth in our core UK home shopping business, particularly through the online channel, as well as focusing on our strategic opportunities in multi-channel stores and international markets.”