Fashion retailer Bonmarché sees the fruits of its labour
Mon 23 Nov 2015
Cheif executive of fashion retailer Bonmarché Beth Butterwick has said she is "pleased" with the progress of the firm as it invests in its digital channels and marketing.
Bonmarché's interims showed that revenue was up, to £97.0m in the half year to 26 September 2015 from £91.1m in the same period last year.
Pretax profits dipped to £5.40m from £6.40m due to the company's investment in its digital channels, investing in a responsive website and search engine optimisation as they seek to target potential customers who are unaware of the brand.
The Wakefield-based company said that online sales grew 4.2% on last year, adn by 11.4% in the first quarter. A decline in the second quarter was down to the launch of the website, which interrupted traffic.
The retailer has also invested in its marketing with TV ad campaigns and the launching of new stores. Sales from new stores increased to £9.1m from £4.3m in the same period last year
Bonmarché has employed marketing and multi-channel director to drive growth in these sectors.The fashion business is also set to make the move to the Official List of the stock exchange, after floating on the AIM in 2013, a move which valued the company at £100m. Most recent estimates suggest that Bonmarché is worth up to 50% more than that, as of September 2015.
Beth Butterwick, chief executive of Bonmarché, commented: "Bonmarché's performance for the first half of the year has been satisfactory and we have made further progress against our strategic objectives.
"Trading conditions during November have been challenging, due to very mild, wet weather. Our expectations for the full year remain unchanged, provided that trading conditions normalise for the remainder of the financial year."
The Wakefield-based retailer has 292 stores, of which 265 are standalone Bonmarché shops. The remaining 27 outlets are concessions, including 17 in garden centres.