Merchant smells success in Oz

Fragrance and department store group Merchant Retail is sniffing out antipodean stores as it prepares to take its Perfume Shop fascia to Sydney, Australia.

Chief executive Philip Newton said he was 'seriously investigating' opportunities with Australian landlords and would require a critical mass of eight to 10 stores for launch.

Newton said the venture would be run as a separate business, with senior management input from the UK. He anticipates growing the Australian chain to 40 stores.

The De Gruchy department store in Jersey is providing the testbed for a new cosmetics format that has potential for standalone stores.