Upmarket department store chain Fenwick has posted robust profits and sales and is poised to further overhaul its flagship Newcastle store to drive sales.

For the year to January 26, the family owned group delivered group sales up to£280.3 million, compared with£273.6 million the previous year. Pre-tax profits rose 7.2 per cent to£35.9 million.

Fenwick, which has eight stores and two Bentalls outlets, said operating margins remained strong, despite a 0.1 per cent fall to 10.7 per cent. Its gross margins rose one point to 42.1 per cent.

Last month, it relaunched the menswear department at the chain’s 225,000 sq ft Newcastle store. It has appointed its first external communications company, Cravens, to advertise the new department.

Cravens client services director Cathy Atkinson said: “Menswear has undergone a huge refit to look like a boutique. This year has been the start of more in-store refurbishments. Going into next year there will be other department refits.”

The retailer has created a marketing and creative department for the Newcastle store.

Retail Knowledge Bank senior partner Robert Clark said the performance was “solid”, but the retailer faced a more testing year this year. Fenwick said it was confident of maintaining its present level of performance.

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