House of Fraser plots first three stores in China
HOUSE of Fraser is poised to make its first foray into China, the department store chain said yesterday as it posted record full-year underlying sales.
The retailer was snapped up last year by Chinese conglomerate Sanpower through its Nanjing Cenbest subsidiary in a £480m deal.
The company said that it will open its first three stores in China this financial year in Nanjing. It will also launch online there as well as in other countries such as Australia.
A second franchise store in Abu Dhabi will also open soon with additional openings in the Middle East set for 2016. House of Fraser opened its first international store in Abu Dhabi in 2013.
The company, which has 59 stores across the UK, said like-for-like sales rose 5.8 per cent in the year to 31 January, bringing total sales to £1.3bn. House brands such as Linea and Army and Navy performed well, with sales up 10 per cent.
Earnings before interest, tax, depreciation and amortisation rose seven per cent to £64.4m.
Online sales surged 32 per cent thanks to improved delivery options and now make up 15.4 per cent of total sales. Bricks and mortar growth, while more sluggish, was still up 2.2 per cent.
Sales for the first 11 weeks of its new fiscal year were up 6.5 per cent with a further improvement in its gross margin rate.
Nigel Oddy, House of Fraser’s new chief executive who replaced John King in February, said: “We are confident that the group’s business model, with our premium brand positioning and strong multichannel operation will ensure that House of Fraser continues to grow and develop for the foreseeable future.”