Womenswear retailer Hobbs may transfer some manufacturing to Eastern Europe, as it drives profits on the back of expansion and marketing.
Managing director Nick Samuels said: 'We are considering putting some of our production overseas, like our classic suits, which are the same every year.'
All Hobbs clothing is currently made in the UK. Samuels says this allows flexibility, because lead times are short. 'At the cost of making it in the UK, you can deliver fast fashion,'he said.
However, he also said it makes business sense to exploit cheaper manufacturing for garments that are unlikely to change significantly season to season, such as suits.
Separately, Hobbs plans to double store numbers and turnover. Sales in February, the first month in the retailer's financial year, were up 13 per cent like for like and 7 per cent above target.
In the year to January 2004, sales climbed 40 per cent to£50 million, while pre-tax profit surged 80 per cent to£7 million.
Samuels added that Hobbs is close to signing a deal with a European franchisee to open stores in Europe, as well as exploring overseas opportunities in Canada and the Middle East.
The 50-outlet retailer is considering launching a perfume range as it looks at ways of raising brand awareness. Other diversification could include eyewear, childrenswear, swimwear, lingerie and menswear.
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