Woolworths’ demise is OFS’s gain
VALUE retail chain The Original Factory Shop today revealed a 12% jump in sales and pledged to open 30 new stores in the next 12 months.
The group, which has stores across Yorkshire, is continuing to thrive in the recession as cash-strapped shoppers look for bargains. It has been lifted too by the demise of traditional retailers including Woolworths.
It has just bought two former Woolworths stores in Chepstow and Cardigan, south Wales, with more in the pipeline, and has also recruited many former Woolies’ staff at its 107 stores nationwide.
OFS, which brought in former Debenhams and Asda executive Angela Spindler as chief executive in January, said its like-for-like sales in the 14 weeks to March 29 were up 12%.
The business was based in Steeton, near Keighley, until recently when it moved its headquarters to Burnley.
The Original Factory Shop, which has stores in Garforth, Hoyland, Ilkley, Knottingley, Lightwater Valley, Ripon, Stocksbridge and York, sells men’s, women’s and children’s clothing, as well as electrical goods toiletries and homewares.
Full year results, due in the next month are set to reveal annual sales growth of more than 20%, taking annual turnover close to £100m.
Ms Spindler, who lives in Halifax, said today: “The demise of Woolworths has created opportunities for us not only in terms of sites but also in terms of staff recruitment.
“When locating our new stores our primary goal is to reach local communities and provide people with great value products right on their doorstep – a proposition that as a nation we’ve come to enjoy through institutions like Woolworths and which we strongly advocate.”
As part of its ongoing expansion two new stores will open later this month in Peterborough and Shirehampton near Bristol, adding to recently opened outlets in Harwich and Bexhill which are already trading well.
Ms Spindler added: “Our performance over the last 14 weeks reflects our ability to deliver real value to communities across the UK and also highlights our relevance in an increasingly tough retail climate.
“We’re now looking forward to driving this momentum forward into summer, especially as more people opt to stay at home this year.
“We have ear-marked a substantial sum of money for our roll-out. The model tends to work wherever we can get the right location – typically small towns with a population of 10,000 to-20,000 and where there’s low levels of competition, lower rents and a lower cost base. It’s a great formula.”
She said the best selling items “week in, week out” were men’s jeans, DVDs, women’s underwear and steel toe-capped shoes.
OFS, which is now owned by private equity outfit Duke Street Capital, was founded in Yorkshire 40 years ago.
It was sold in a £68.5m deal via a secondary management buyout in 2007.
