Bonmarché profits and sales surge as product and pricing overhaul pays off

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Bonmarché has posted a surge in half-year profits as sales rise following an overhaul of its product, pricing and supply chain.

The value fashion retailer’s pre-tax profits increased 68.1% to £6.4m for the six months ending September 27, while total revenues increased 11.8% to £91.1m.

Like-for-like sales in stores grew by 7.8% during the period and online sales penetration reached 7.2% of total sales, up from 5.3% a year ago.

Bonmarché said it had higher rates of sale due to range improvements and added it reduced entry prices in line with its “first price, right price strategy”.

The retailer has also “rationalised” its suppliers to “an appropriate level” for its current range of products.

During the period Bonmarché also developed a new EPOS system, refitted 11 stores, launched trial menswear ranges and opened four new stores.

Bonmarché chief executive Beth Butterwick said: “Towards the end of Q2, trading conditions became more difficult due to the unseasonably warm weather.

“These conditions have continued into the second half; however, on the basis that the weather returns to its normal seasonal pattern, the board expects the current year’s performance to be in line with its original expectations.”