Like-for-like sales at the value retailer climbed 4 per cent and total sales rocketed 17.4 per cent in the period. In the financial year to date, like-for-likes were up 3.2 per cent, on sales up 16.8 per cent.
The 91-store retailer has also ramped up its expansion investment, from£10 million to£15 million. It will open 13 stores before Christmas and now wants to launch more than 20 a year, instead of its original target of 10 to 15.
“We’re in the right end of the market as people are trading down,” said chief executive George Foster. “Despite the difficult retail climate, our last financial year has been our strongest yet and the result of a cohesive product mix. Our great asset is the fact we go into a small town with a wide range, including great brands. We’re like a mini department store.”
Original Factory Shop has identified 700 UK towns in which it could operate. It is also seeking opportunities in the Republic of Ireland and hopes to have a presence there within the next three years.
Foster added: “Trading conditions are as hard as they are going to get; it will be tough for the next couple of years, but we’re in a position to capitalise on that and we’ll hang on to our customers even as the credit crunch eases.”
Plans for a transactional web site have been shelved temporarily as Foster concentrates on store acquisitions, although he said it will happen within three years.
In December last year, Original Factory Shop was taken over in a management buy-out worth£68.5 million, backed by private equity firm Duke Street Capital.
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