Fenwick, the premium department store, swung back to a profit in 2022 after it sold its Bond Street store for around £430 million, reports for Retail Week revealed.
As a rival to John Lewis Partnership, the group echoes many of the struggles seen by the Waitrose owner, having experienced losses of around £60 million.
Posting pre-tax profits of £57 million in the twelve months to January 28, the UK based retailer had previously suffered losses of £5.2 million the year before, financial filings revealed.
Overall sales for the privately owned group lifted by 31% to reach £315 million, with online sales soaring by over 50%.
Fenwick boss John Edgar says the group is currently undergoing a transformation plan, aiming to improve the offering for customers in-store as well as bolstering its digital operations through increased investment.
Edgar, who took charge of Fenwick in 2020, said: “Last year was one of the most important in the history of Fenwick. [The Bond Street disposal] has allowed us to continue our transformation on an even more sound footing.
“It’s allowed us to step up investment in all our stores, particularly Newcastle, and invest in digital, which is the growth driver.”
Improvements include the relaunch of the company’s website, consolidating supply chains and rejigging product assortments at its store in Newcastle.
Dunelm
On the other side of pricing but still in the department store space is Dunelm Group PLC (LSE:DNLM), the listed retailer with a focus on home furnishings.
Providing first quarter results on Thursday, the Leicestershire-based group saw sales jump 9% to £390 million, with digital channels accounting for slightly over a third of total revenues.
Dunelm, like Fenwick, says it will be focusing on digital, with plans to modernise its total retail system.
Although the economic outlook looks uncertain, management at the retailer is confident in delivering “sustainable growth”, supported by the planned openings for three new sites during the 2024 financial year.
Nick Wilkinson, chief executive officer, commented in a company statement: “We continue to have a laser focus on outstanding value, and customers can now find even more choice with the introduction of new ranges such as live plants.”
Analysts at Shore Capital Group (LSE:SGR)l rate the stock a ‘hold’, arguing that while it is a standout performer in the retail sector, the current market valuation already considers its future opportunities.
Shares in Dunelm are trading flat on Thursday, having opened at around 1,035p.