The recent financial results for Peacocks, Bonmarché, and Edinburgh Woollen Mill (EWM) indicate a return to profitability after being purchased out of administration in 2021.
- Peacocks reported a significant turnover increase to £238m with an operating profit of £14.7m for the year ending 25 February 2023.
- Edinburgh Woollen Mill and Bonmarché achieved combined sales of £195m and an operating profit of £8.1m during the same period.
- Improvements were driven by updated store estates, investment in key product categories, and substantial ecommerce growth.
- The businesses are planning an expansion with 100 new UK stores expected in the next 18 months.
Peacocks has demonstrated a remarkable turnaround with its turnover reaching £238 million, and an operating profit of £14.7 million for the year ending 25 February 2023. This performance marks a considerable improvement from the prior year, where the company faced an operating loss of £12.4 million on a turnover of £139 million. Such progress is largely credited to initiatives led by the current CEO, Steve Simpson, who took over the helm following the businesses’ acquisition in 2021.
Similarly, Edinburgh Woollen Mill and Bonmarché have shown positive financial outcomes. Collectively, the two retailers recorded sales of £195 million, achieving an operating profit of £8.1 million. This is a significant shift from the previous year’s figures, where the companies reported combined revenues of £122 million and an operating loss of £7.7 million. The strategic emphasis on an updated store estate and growth in ecommerce have been crucial to this success.
Peacocks’ strategic review of its stores, which included opening five new locations and closing or relocating 20, resulted in a net total of 336 stores. Concurrently, online transactions surged by 40% year over year, reflecting a strong emphasis on expanding ecommerce capabilities. Product categories that particularly contributed to this growth included denim, shirts, and activewear across both menswear and womenswear.
At Edinburgh Woollen Mill, the retail footprint expanded from 183 to 191 outlets, focusing on markets in towns, tourist hotspots, and garden centres, with places like Anglesey, Inverness, and Fort William becoming key contributors. Renowned for its knitwear, the company has also diversified its line of in-house designed prints for tops and dresses, driving growth in various clothing segments.
Bonmarché expanded its number of stores from 175 to 225, adding locations in various regions including Middlesbrough, Oban, and Tring. The launch of a loyalty app in November 2022 also supported customer engagement and sales. Online orders for Bonmarché increased by 17.4% year on year, further indicating the company’s successful foray into digital channels. Additionally, plans for opening 100 new stores in the UK over the next year and a half signify a robust strategy towards growth and market presence.
These financial achievements underscore the successful strategies implemented by Peacocks, Bonmarché, and Edinburgh Woollen Mill post-administration.
