Fortnum & Mason is poised to launch its food products in top European department stores as it seeks avenues for its merchandise and takes advantage of sterling’s weakness against the euro.
Managing director Beverley Aspinall said talks with potential partners are at an advanced stage and the first ranges will launch in the food hall of LVMH-owned department store Le Bon Marche in Paris next month.
“The ranges will be a combination of imported and fresh products,” said Aspinall.
She added that bakers from Le Bon March頨ad already visited the UK to learn about making English bread and that a reciprocal arrangement is in place for Fortnum & Mason’s bakers to learn French methods.
As well as fresh bread, Fortnum & Mason-branded tea, biscuits, jams and preserves will all be stocked at Le Bon Marche’s food hall, Grande ɰicerie. The initiative forms part of Fortnum & Mason’s efforts to restore profitability by cutting costs and expanding its trading activities.
Aspinall said that with the completion of the Piccadilly flagship refurbishment in November 2007, the focus is now on the internet and international activities. “We think there is room for improving the customer experience online, right down to the delivery of a product,” she said.
The retailer is mid-way through a 30-day consultation likely to result in 55 management and back-office staff being made redundant by March 6.
Aspinall said: “We are restructuring in response to what we anticipate will be a difficult 2009 and first part of 2010.” The store’s selling staff will be unaffected by the redundancies.
Fortnum & Mason narrowed its full-year losses to £8.2m, after posting record sales of £46m – a 17 per cent increase – in the year to July 13, 2008. Pre-tax losses the previous year were £10.1m.
Aspinall said that following restructuring she expects losses to be further curtailed and that the retailer will break even by the end of the next financial year, July 2010.
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