C&A Germany is to double its number of Kids Store shops and plans to roll out womenswear-only stores after posting strong results.
Compared with last year, profits at the 215 German stores increased three-fold to EUR 106.9 million (£76.7 million) for the year to March 31. Sales increased 2 per cent to EUR 2.8 billion (£2 billion).
Dominic Brenninkmeyer, head of C&A in Germany, said: 'In all 12 European countries in which C&A operates, we have boosted sales and profits strongly.' He said Europe had generated a total sales increase of 5 per cent.
Now C&A intends to more than double the double of its Kids Store fascias in Germany, from 28 to 65 by the end of 2003. The first C&A Women stores opened over the past two months in Lindau and Bremen. A store in Olpe will open this autumn and two more sites are under negotiation.
Brenninkmeyer said: 'The experience gathered in the first few weeks is already confirming our view that the right location and a well-balanced range ... will appeal to price-conscious women interested in fashion on a broad front.'
Brenninkmeyer said that the turnaround of C&A in Germany is against the background of a difficult trading environment. Last year, German retailers' clothing sales fell 8 per cent and 3,000 clothing stores closed, he said. 'Instead of taking part in price wars, we have consistently made a persuasive case with our value for money strategy.'
On top of expenditure on expansion, C&A has invested in IT and advertising.
Last year was the second of profits after five consecutive years of losses, during which C&A pulled out of the UK.
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