Bonmarche’s strong trading after revamp
Focus on the customer reaps rewards
OVER 50S fashion retailer Bonmarche has reported strong online trading following a revamp of its catalogue and a focus on fit, quality and fashion.
The Wakefield-based budget fashion chain is bucking the retail downturn by zeroing in on exactly what its customers want.
Helen Connolly, chief executive of Bonmarche, said: “We’re delighted with the improvement in online sales.
“We’ve got some key areas that are driving sales. Swimwear is doing particularly well online and we have increased the number of online exclusives.
“We are selling fabulous prints, swimwear with tummy control and additional leg and skirt lengths. You can get five different leg lengths online compared with two lengths in store.”
She was speaking as the group announced a 38 per cent leap in pre-tax profits to £8m in the year to March 31. A 35 per cent jump in online sales offset tougher high street trading, with like-for-like store sales down 4.5 per cent.
Fiona Cincotta, senior market analyst at City Index, said: “At a time when the likes of Marks & Spencer, Mothercare and even retail market darling Ted Baker have issued disappointed results, Bonmarche has stood out with an attractive set of figures.
“Revenue was always expected to be lower, given weak consumer confidence and some nasty weather earlier this year, but overheads and stock volumes have been deftly kept under control, all while the company has improved the appeal of its designs and grown online sales at an impressive clip.”
The group’s total revenue fell from £190m to £186m.
Ms Connolly said the high street will remain tough for the foreseeable future although Bonmarche’s clear target market means it is on track to meet full year expectations.
“We are one of the few retailers that target our market. Our customers want great fit, quality and fashionability,” she said.
Ms Cincotta added: “Conditions for retailers remain tough and pressure on sales will likely persist until consumers get a clearer view of where Brexit negotiations, interest rates and the size of their pay packets are heading. But it at least looks like the rot has stopped at Bonmarche.”
Following strong sales of denim, where sales are up 50 per cent year on year, the group said it is very pleased with its new Spring/ Summer linen range.
“Linen is performing really strongly. We’ve introduced new styles and prints,” said Ms Connolly.
She said there is a trend towards more casual styles rather than formal, such as blouses that are worn with denim and dresses that can be dressed up or down. Ms Connolly said the group has also introduced a much more agile supply base.
Our customers want great fit, quality and fashionability. Helen Connolly, chief executive of Bonmarche