Gifts Today magazine

Fragrance Shop smells success with 11% growth in retail sales

The Fragrance Shop has reported an increase of 11 per cent growth in retail sales driven by a number of factors including an underlying four per cent increase in like for like sales and a continued strategy of aggressive expansion with 17 new stores opening during the year.

This has resulted in underlying group profitability rising 6.5 per cent to £13.2 million compared to £12.4 million last year. Luxury and designer brands such as Chanel, Dior, Gucci, Loewe and Viktor and Rolf have accounted for a large proportion of sales as the luxury market continues to perform well. Recent additions to The Fragrance Shop’s offering such as the Amouage and Versace brands have also seen the retailer grow its share of the luxury fragrance category.

The Manchester-based retailer has also focused on developing its multi-channel offering. New services introduced this year include the ability to order in store from a more extensive catalogue giving customers the opportunity to buy an old favourite, even if it has previously been delisted.

Demonstrating confidence in its pricing strategy, the business launched a Pricematch offering across its store estate in November. It was also awarded Gold Trusted Merchant status by independent retail reviewer Feefo. This accolade is given when a retailer has received a 95 per cent Feefo Service Rating, which is derived from customer reviews and is further evidence of The Fragrance Shop’s commitment to customer service. Managing Director Pete King credited a focus from the Retail Operations, Merchandise and Distribution teams with the achievement of a score consistently over 98 per cent.

Chief executive officer Sanjay Vadera commented: “These strong results are testament to The Fragrance Shop team and our commitment to improving our customer’s experience. We’ve made shopping with us easier than ever before with multiple ways to purchase and we offer consumers unparalleled advice and guidance when it comes to buying fragrance.
“We have another big year ahead of us with the launch of 1667, our first internally developed luxury fragrance range. We’ll continue to expand our retail estate with a further 20 stores due to open and we’ll unveil some game-changing digital developments.”

During the year The Fragrance Shop continued to support its charity partner, Rays of Sunshine, by giving five pence per customer transaction to the children’s charity. To date The Fragrance Shop has donated over £500,000 to Rays of Sunshine. The money raised goes towards granting wishes for terminally and seriously ill children in the UK.
The Fragrance Shop was founded in 1994 with a single store. It is now a multichannel retailer employing over 1,000 people operating 170 stores nationally and a distribution facility in Manchester.

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