Future of Retail: Entrepreneur upbeat on Fabric Warehouse
ENTREPRENEUR Tony Caldeira says he is making progress in the turnaround of his retail business Fabric Warehouse, which he bought out of administration in 2008.
The Knowsley-based businessman says the company – which has 14 stores and turnover of £7m – has a “good chance” of making a profit next year, and once this has been achieved, he will look to grow it.
At its peak Fabric Warehouse, which was originally part of Homestyle Group, had 41 stores. Four years after the acquisition, the slimmed-down company remains loss making as sales of ‘big ticket’ home furnishing purchases such as made-to-measure curtains have been badly hit by the weak economy, low consumer demand and the lacklustre housing market.
The company has also suffered because of the amount of space that was inherited.
Mr Caldeira was speaking to TheBusinessDesk.com for its Future of Retail supplement. Click here to download the 20-page PDF, produced in association with DWF and Baker Tilly.
He said: “Like most other retailers in soft furnishings, turnover has fallen in the last couple of years. We are not profitable at the moment and have lost money for the last three years but we have made progress
in turning the business around.”
Fabric Warehouse, which has its stores mostly located in the south, is on
budget for 2012 and is making “significant progress”, with ready made curtains and cushions and lower-cost items selling well, he added.
As part of its turnaround plan, the company has cut staff and stock numbers, improved margins by going direct to source supply, added concessions to its stores to help cover the costs of surplus space and done some tough negotiating with landlords.
Mr Caldeira said: “The business had the wrong attitude and was very top heavy. We trimmed that and brought the warehouse and head office function into Caldeira in Knowsley.
“In 2013 we have a good chance of seeing our first black number at Fabric Warehouse, Were it not for the issues with made-to-measure and
the properties, it would be profitable now.
“Many people have been putting buying custom-made blinds and
curtains on hold so when things come back I think it will do so
quite strongly. Once we have cracked this I think it’s a great retail offer that is scalable and can be rolled out.”
He is keen to add more stores, moving up north gradually from its
existing base of stores, but refuses to do so until the business is back
in profit.
“There is a temptation to take more space with the deals that are available but I’m determined to make it right before doing that. I would love to be part of that retail cluster in Liverpool, with Matalan, Shop Direct, Home Bargains.It’s not a question of if, but when.”
Click here to download the 20-page Future of Retail supplement.
