Fenwick, the independent department store chain, has recorded a pre-tax loss of £28.4 million for the year ending 26 January 2024.
- The loss contrasts sharply with the previous year’s pre-tax profit of £57.1 million, bolstered by the sale of its New Bond Street store.
- A challenging retail environment and inflationary pressures contributed to a 7% year-on-year decline in turnover to £184.2 million.
- Gross sales decreased by 6% to £303.6 million, leading the company to focus on investment in city centre locations and online presence.
- Fenwick’s planned appointment of Nigel Blow as CEO will not proceed, following recent developments.
Fenwick, an established independent department store chain, has reported a significant financial downturn with a pre-tax loss amounting to £28.4 million for the fiscal year concluding on 26 January 2024. The financial setback is a stark contrast to the previous year’s profit of £57.1 million, which was positively influenced by the £430 million sale of the New Bond Street location.
The company attributed this loss to inflationary pressures and a rapidly changing retail environment. During the same period, turnover experienced a 7% decline year-on-year, totalling £184.2 million. Additionally, gross sales saw a reduction of 6%, bringing in £303.6 million. Such declines underscore the current challenges faced by the retail sector, driven primarily by external economic factors.
Despite these financial challenges, Fenwick’s cash reserves improved by £134.8 million, raising the total to £179.1 million. This increase was largely facilitated by asset disposals in the prior year, offering the company an opportunity to reinvest in its core city centre locations along with enhancing its online retail operations. Fenwick maintains a commitment to returning to profitability by refining its operating model to harness efficiencies, especially in its online division.
Moreover, the company announced that Nigel Blow, initially slated to assume the role of CEO, would no longer be joining the organisation. This decision follows allegations involving Harrods’ former owner, allegations which Blow stated he had no knowledge of. Consequently, a Fenwick spokesperson confirmed the withdrawal of the appointment.
Fenwick continues to demonstrate strategic foresight with an emphasis on improving customer service and maintaining product margins. The organisation aims to leverage its strong market presence within local communities as part of its strategic focus on sustainable growth and profitability.
Fenwick remains dedicated to overcoming current challenges and achieving long-term profitability through strategic investments and operational improvements.
