House of Fraser Chief Executive Nigel Oddy credits their jump in first half profits to a combination of online and bricks-and mortar sales growth, as every category saw positive results and “true multichannel approach”. Their growth arises from all routes to market. For the 26 weeks to August 1, turnover increased 6.5% year-on-year to £574.2m, whilst gross profit rose 5.8% to £204.7m. Online sales rose by 30.8% and are now 17.5% of total sales, whilst like-for-like sales in bricks-and-mortar stores were up 2%. Third party brand sales rose 7% and now represent 85% of total sales.
The department store group are constantly looking at their offering. Oddy comments on their limitless capacity to expand their online offer as opposed to their limited store space, so, they are focussing on assessing what things “are working and which aren’t, as well as looking at new and up-and-coming brands”. They are also planning on new additions for 2016.
Their first department store is opening in China in Autumn 2016. It has already accumulated a number of UK and local brands, however, they have not yet been announced.