Catalogue and Internet retailer predicts further growth
Home shopping sales for catalogue to internet retailer N Brown Group increased 11.6 per cent in the 21 weeks to January 21, this year, with improved clothing and footwear ranges driving the growth.

Excluding sales from the House of Bath catalogue, which was acquired in November 2004, home shopping sales for the same period were up by 9.2 per cent. Group sales from continuing operations rose by 7.1 per cent, despite a£6 million reduction in House of Stirling's turnover, planned as part of N Brown's programme to discontinue low margin business

New mid-season mailings enhanced the frequency of purchasing and the average spend per customer, with sales of womenswear up 13 per cent and turnover for the footwear range up 24 per cent. Simply Be and FashionWorld, aimed at the 30- to 45-year-old age group, witnessed the strongest growth, with sales up by 19.3 per cent, although the core mid-life titles also performed well, generating 5.5 per cent more turnover. Online sales increased by 60 per cent and now represent 16 per cent of total sales.

Gross margin levels have been maintained, said the company, but the more diverse product mix also contributed to a 5 per cent reduction in the average selling price. This resulted in higher volumes and therefore higher operational costs.

N Brown said it was pleased with the performance in the second half to date and expects the results for the year to be towards the top end of its expectations.

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