The retailer, which operates 30 concessions in Somerfield stores and six in Woolworths, is poised to sign an agreement with a third retailer to open about 30 concessions. It is also scouting for a fourth retailer to open a similar amount.
Peacocks director of retail operations Chris Miles said expanding via concessions, while continuing with its plans to open 30 standalone stores in the next financial year, would allow the retailer to expand rapidly with minimal investment and a quick return on investment.
“When times are tough, concessions make sense,” he said.
Peacocks has opened its first concessions in town centres with Woolworths. Last week, it opened a 7,000 sq ft space on the first floor of the Watford Woolworths. It will open its second, a 4,000 sq ft area, in Guildford town centre on May 14.
It will also double the space given to concessions at six other Woolworths stores, which opened in the middle of Peacocks’ 2006/2007 financial year.
Wholesale agreements at eight former Big W Woolworths stores in out-of-town locations are likely to be converted to concessions, depending on the success of its first conversion at Woolworths’ store in Bradford on March 19.
Peacocks said the town centre openings allowed it to launch quickly in areas where it does not have a presence. It added that the tie-up does not prevent it from opening standalones in the same area.
The concessions have the appearance of Peacocks’ standalone stores and offer its full range.
* Fast-fashion retailer New Look commercial finance planning director Shaun Wills and Simon Michel, international finance director of its French chain Mim, are set to leave over the coming months.
Chief executive Phil Wrigley said they are both leaving to explore new opportunities and a recruitment process is in place for their successors.