Peacocks, Bonmarché, and Edinburgh Woollen Mill have successfully returned to profitability, marking a significant turnaround since their purchase from administration in 2021.
- Peacocks reported impressive financial results with a turnover of £238 million and an operating profit of £14.7 million.
- Edinburgh Woollen Mill and Bonmarché also reported positive financial performance, achieving a turnover of £195 million and an operating profit of £8.1 million collectively.
- The turnaround is attributed to strategic investments in store infrastructure, product categories, and the expansion of ecommerce.
- The group is planning an extensive expansion, aiming to open 100 UK stores within the next 18 months.
Peacocks, Bonmarché, and Edinburgh Woollen Mill have emerged from financial difficulties to report significant profitability, a remarkable achievement following their acquisition out of administration in 2021. Under the leadership of Steve Simpson, current CEO and former COO of Edinburgh Woollen Mill Group, these businesses have strategically aligned their resources to optimize performance.
Peacocks has demonstrated outstanding improvement with its latest financial outcomes. The brand achieved a turnover of £238 million alongside an operating profit of £14.7 million for the fiscal year ending February 25, 2023, compared to a turnover of £139 million and an operating loss of £12.4 million in the previous year.
The Edinburgh Woollen Mill and Bonmarché have also excelled, reporting combined revenues of £195 million and an operating profit of £8.1 million for the same period. This marks a substantial leap from the £122 million in revenue and an operating loss of £7.7 million recorded the prior year.
Contributing to these results was a focused investment in updating the store estates and bolstering key product categories, supplemented by a robust growth in ecommerce. Peacocks examined its store portfolio, opening five new locations while closing or relocating 20 others, resulting in a streamlined total of 336 stores.
The group’s ecommerce sector witnessed substantial growth, with online transactions for Peacocks increasing by 40% year over year. Similarly, Edinburgh Woollen Mill and Bonmarché saw online growth of 36% and 17.4% respectively.
Edinburgh Woollen Mill targeted expansion in strategically selected locations including market towns and tourist areas, increasing its presence to 191 outlets, up from 183. The retailer capitalized on tourist demographics, focusing on locations such as Anglesey, Inverness, and Fort William.
Bonmarché expanded its store count from 175 to 225, emphasizing customer loyalty with the launch of a new app in November 2022. The company identified growth opportunities across various high streets and enhanced its ecommerce platform.
Looking forward, the group intends to continue its expansion strategy by opening 100 additional UK stores over the next 18 months. Steve Simpson emphasized their commitment to offering exceptional quality and value across their product range, underlining the importance of rewarding loyal customers through innovative programs and extended choices.
These strategic moves mark a new chapter of financial stability and growth potential for Peacocks, Bonmarché, and Edinburgh Woollen Mill.
