The Fragrance Shop has revealed record full-year results, recording a 21.5% surge in EBITDA to £11.3m as it opened new stores and enhanced its multichannel offer.
The perfume retailer generated a 15.1% increase in sales to £81m in the year to March 31, 2013.
Like-for-like sales increased 3.5% as exclusive launches and luxury fragrances, such as Chanel, Paco Rabanne, Jimmy Choo, Gucci and Dolce & Gabbana, pulled in shoppers.
The Fragrance Shop opened 11 new stores in the year, bringing its store estate to 146. In the year, the retailer opened its first larger browsing store in Glasgow and it is planning on opening a second store in the format located in the south by the beginning of next year.
Online has also driven sales and click-and-collect has been a popular service at the retailer, accounting for 17% of total sales. The retailer also recently redesigned its website.
The Fragrance Shop chief executive Sanjay Vadera said: “Although we’re very proud of the fact that The Fragrance Shop is a traditional bricks-and-mortar business we’re not complacent and have looked to build on and leverage this strong base through developing our multichannel offering.
“We continue to prove specialist high street retailers can succeed in turbulent economic times as long as they have a clear strategy that evolves with changing consumer behaviour.”
The retailer’s ‘Try it first’ service has encouraged online sales. Customers receive a free tester of the perfume they have ordered so they don’t’ have to open the bottle and can receive a full refund if they don’t like it.
The Fragrance Shop also said its Discovery Club has helped expand its multichannel offer. Customers are invited to sample five of the latest products every quarter for just £5.They also receive five £5 off vouchers with each delivery.
The Fragrance Shop managing director Nigel Lawmon said: “Ultimately, we’re looking to give our customers the same great experience regardless of how they choose to shop with us. Our new website, with its mobile platform and enhanced shopping features, will continue to play an increasingly important role as it benefits from and grows alongside our expanding store footprint.”
Vadera told Retail Week that The Fragrance Shop remains keen to open stores overseas “in the not-too-distant future”. He said the research into understanding the marketplace is not “fixed to Europe”.