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Published
Oct 9, 2018
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The Perfume Shop revenue stalls amid intense competition

Published
Oct 9, 2018

The Perfume Shop has announced a slight increase in full-year revenue, saying the business is being squeezed by an increasingly competitive and promotion-led trading environment.


The Perfume Shop


The retail chain, which has almost 260 stores and an online shop, increased revenue by just 0.2% during the 53-week period ended 30 December 2017, according to recently filed documents. Sales for the period were £212.8m compared to £212.3m a year earlier.

In addition to new online retailers joining the beauty market and driving prices down, 2017 saw a growing trend of general merchandise and clothing brands branch into beauty products, The Perfume Shop said.

Additionally, trading was tough for UK retailers as consumers faced increasing inflation and the first interest rate rise in ten years.

While the company’s stores experienced slight sales growth of 1% on a like-for-like basis, the online channel performed strongly during the period, up 33% on the previous year. New initiatives for 2017 included an Irish website and the expansion of deliveries both internationally and on Sundays in the UK.

And a cost saving and efficiency programme helped the business offset inflationary rises and grow profit after tax by £0.8m to £11.8m, the document showed. Further efficiencies are expected to be achieved through a series of investments in technology and further cost cutting initiatives.

To continue to deliver growth, The Perfume Shop said it is working with suppliers to offer more exclusive products, launches and gifts, and will continue to blend new product development with innovative in-store environments.

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