Smell of success for The Fragrance Shop
PERFUME retailer The Fragrance Shop has reported record sales, thanks to the launch of a range of big-ticket scents.
The Manchester-headquartered retailer, which has 179 UK stores, said total sales rose 9.4% to a record high of £105m (2015: £96m)for the year to the end of March as it further expanded its store portfolio.
Its online operation also continued to increase in popularity, with year-on-year ecommerce sales rising 38%.
The figures delivered an increase in underlying profit of 9% to £14.4m (2015: £13.2m).
It said sales were driven by new fragrances from Hugo Boss – whose new scent is advertised by British actor Theo James – Decadence by Marc Jacobs and Gucci’s Bamboo, endorsed by Israeli film star Gal Gadot.
The company also reported strong demand for Twist & Spritz, its exclusive 8ml (100 sprays) atomiser.
During the year The Fragrance Shop opened 14 new stores and is on track to launch another 20 new stores in the current financial year, with the aim of opening its 200th store in 2017.
The retailer, which employs just under 1,100 people, also said trading had remained strong following the EU referendum vote as consumers sought out ‘accessible luxury’.
Michelle Edmondson, retail director of The Fragrance Shop, said: “During another strong year of trading at The Fragrance Shop, we continued to grow both headline and like-for-like sales, increasing our market share in a highly competitive market.
“Trading has remained robust in the wake of the Brexit vote in late June and we are experiencing something of a ‘fragrance effect’ – in these uncertain times we believe people view fragrance as an accessible luxury. People may be foregoing extravagant purchases, but they can easily and affordably invest in a new fragrance to help them feel great.”
The Fragrance Shop said it had received positive customer feedback on My Fragrance App, the ‘fragrance finder’ for smartphones launched last year which allows shoppers to receive personalised recommendations.
It also reported strong take-up of its same-day delivery service, developed in partnership with Shutl, which lets customers order and receive their fragrance in as little as an hour.
Sanjay Vadera, chief executive of The Fragrance Shop, added: “Our focus over the next year will be on bringing this combination to even more people as we approach 200 stores in the UK. We’re also confident of enjoying another successful Christmas, our key trading period of the year.”
Vadera said Diesel BAD and Hugo Boss’s The Scent Her were expected to be top-sellers this Christmas, alongside perennial favourites from Chanel, Viktor & Rolf and Dior.
