Peacocks, Bonmarché, and Edinburgh Woollen Mill (EWM) have successfully returned to profitability in the financial year ending February 2023.
- After being bought out of administration in 2021, these retailers have witnessed significant financial turnaround.
- A strategic focus on updating the store estate and investment in key product categories has driven this improvement.
- Edinburgh Woollen Mill has expanded its retail presence, focusing on market towns and tourist locations.
- Plans for future expansion include opening 100 UK stores in the next 18 months.
Peacocks, Bonmarché, and Edinburgh Woollen Mill, after being rescued from administration in 2021, have reported a substantial return to profitability. Peacocks achieved a turnover of £238 million and an operating profit of £14.7 million for the year ending 25 February 2023. This is a notable improvement from the previous year’s turnover of £139 million and an operating loss of £12.4 million.
Edinburgh Woollen Mill and Bonmarché have also demonstrated financial success, with combined sales reaching £195 million and an operating profit of £8.1 million. In the previous year, they suffered from an operating loss of £7.7 million on £122 million in revenue. The turnaround is attributed to operational changes initiated by Steve Simpson and an international investment consortium.
The retailers attribute their improved performance to a revitalised store estate, targeted investment in product categories, and enhanced ecommerce capabilities. Peacocks conducted significant changes with five new store openings and 20 relocations or closures, maintaining a total of 336 outlets. Online sales witnessed a 40% increase, with denim, shirts, and activewear outperforming expectations.
Edinburgh Woollen Mill has expanded its footprint to 191 stores from 183, focusing on strategic locations such as market towns and tourist areas like Anglesey and Inverness. Knitwear remains central to its offerings, though in-house designed prints have bolstered other clothing categories. Meanwhile, Bonmarché increased its store count to 225, including new openings in various UK locations, and reported a 17.4% rise in online orders.
Steve Simpson, now CEO of the three retailers, highlighted the strategy of offering exceptional quality and value for all family members. The businesses plan to leverage this strategy further by expanding their product offerings and exploring more high street opportunities, alongside bolstering their ecommerce platforms.
The effective strategies and management initiatives have been pivotal in guiding Peacocks, Bonmarché, and Edinburgh Woollen Mill back to financial health, setting a strong foundation for future expansion.
