Value retailer Original Factory Shop continued to defy the downturn, revealing its strongest six months to date.
Like-for-like sales climbed 4.5 per cent in the six months to October 31, when gross sales soared 20 per cent and gross margin jumped 60 basis points.
The retailer would not disclose profits for the period, but chief executive George Foster said: “Despite the difficult retail climate, the last six months have been our strongest yet and the result of a cohesive property strategy with a diverse and dynamic product mix.
“Consumers are looking for good value deals and we can offer them just that, right on their doorstep. We’re gearing up for what could be our busiest festive season yet, although there is an air of caution over what the new year will bring.”
Health and beauty products – particularly perfume – performed “exceptionally well”, as did ladies’ fashion accessories.
The retailer, which this week opened its 100th store in Deal, Kent, has opened 13 shops since April and plans to open 20 in total by the end of the financial year. To promote its Christmas offering it will post leaflets to 3 million households, up on the 2.4 million it posted last year.
The performance is another example of value retailers cashing in on the economic crisis. Earlier this year Home Bargains recorded a 17 per cent leap in operating profits to£34.7 million for the year to June 30, while last month Poundland reported its operating profits rocketed 122 per cent to£8 million in the year to the end of March.
Original Factory Shop’s outlets are located in secondary, smaller towns. The retailer, which is positioned as a local department store, offers men’s, ladies’ and children’s fashion, as well as homewares, electricals and toiletries.
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