The Fragrance Shop sees turnover hit £81m

INDEPENDENT perfume retailer The Fragrance Shop has reported an annual sales increase of 15.1% to £81m as a result of new stores and the popularity of its click and collect service.

In the last year, the privately-owned chain, which was founded with one store in 1995, has added 11 new stores to its trading estate bringing the total number of outlets to 146, and employing more than 800 staff.

But it also said like for like sales for the year to the end of March 2013 were up 3.5% as exclusive launches and luxury fragrances attract more customers.

Underlying profits (ebitda) increased by 21.5% to £11.3m (2012: £9.3m), while operating profit (ebit) was £10.2m, up 20% (2012: £8.5m).

The Fragrance Shop’s click and collect service – which allows shoppers to order from its recently redesigned website and then pick up the purchase in store – now accounts for 17% of all its sales.
 
It became the first UK retailer to introduce a ‘try it first’ service – where customers receive a free tester of their chosen fragrance when purchasing a full sized bottle and if they don’t like it they can return the full bottle unopened for a full refund – meaning more customers are now buying fragrances online without having to worry about never having sampled it before.
 
The retailer also said its ‘Discovery Club’, launched earlier last year, had added to its expanding multi-channel offering. Here, customers are invited to sample five of the latest releases every quarter for just £5 whilst also receiving five £5 off vouchers with each delivery.
 
Sanjay Vadera, chief executive of The Fragrance Shop, said: “Although we’re very proud of the fact that The Fragrance Shop is a traditional bricks and mortar business we’re not complacent and have looked to build-on and leverage this strong base through developing our multi-channel offering.
 
“We continue to prove specialist high street retailers can succeed in turbulent economic times as long as they have a clear strategy that evolves with changing consumer behaviour.”
 
Nigel Lawmon, managing director of The Fragrance Shop, added: “Ultimately, we’re looking to give our customers the same great experience regardless of how they choose to shop with us. Our new website, with its mobile platform and enhanced shopping features, will continue to play an increasingly important role as it benefits from and grows alongside our expanding store footprint.
 
“We still have some more exciting developments to come which will continue to ensure we stand out from the crowd.”