Fenwick has suffered widening full-year losses after enforced store closures drove a slump in sales during the coronavirus pandemic.
The department store retailer posted a pre-tax loss of £111.9m in the year to January 29 compared with £47.3m in 2020.
On an operating basis, before exceptional items and changes in the value of its properties, Fenwick’s losses almost quadrupled to £44.9m from £11.8m a year ago.
Net sales tumbled 56% to £119m after the retailer was forced to close its stores for 21 weeks of the financial year amid prolonged periods of social distancing restrictions across the UK.
Fenwick warned that closures at the beginning of 2021 would “inevitably” impact profitability in its current financial year. Its Bond Street store has been particularly impacted by the lack of tourists visiting London and the end of VAT refunds for international shoppers.
The department store group is refocusing its efforts on categories such as leisurewear, trainers and lifestyle products, as well as homewares, as it adapts to changes in consumer demand during the pandemic.
The retailer has also introduced concierge, call and collect, and virtual personal shopping services to tempt shoppers back into stores, and “rapidly” broadened its online proposition when stores closed.
Fenwick chief executive John Edgar said: “These results reflect the challenges that the retail sector faced in 2020. I’m very proud of the way the Fenwick team adapted to these challenges to provide customers with our trademark Fenwick hospitality, rapidly scale up our online offer and introduce new services such as concierge.
“We are now focused on ensuring our nine stores and website continue to build stability and serve our local communities in the year ahead.”
- Don’t miss the best of the week – sign up to receive the Editor’s Choice every Friday
1 Reader's comment