House of Fraser (HoF) was expected to deliver a New Year fillip to investors as Retail Week went to press, revealing better-than-expected margins in the face of scaremongering that Christmas was a washout.
The department store group was due to update the market yesterday. It was understood in advance that Christmas trading was 'not great', but predictions of negative sales and margins were overdone.
HoF employed less, rather than more, discounting than in 2002, although deeper price cuts were offered on party frocks ahead of Christmas. Accessories and beauty were strong performers.
The group's mid-season Sale was a week shorter, and made savings by using new customer reward scheme, Recognition, instead of 10-per-cent-off promotions.
Fears of poor trading had encouraged bid speculation. Entrepreneur Tom Hunter, possibly in league with a private equity house, is a prime suspect to swoop on the chain.
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