Bonmarché, Peacocks and Edinburgh Woollen Mill return to profitability

Bonmarché, Peacocks and Edinburgh Woollen Mill, which were bought out of administration in 2021 by Purepay Retail, have returned to profitability in the last financial year.

Peacocks, trading as Anglo Global Property Limited, generated a turnover of £238 million and an operating profit of £14.65 million for the year to February 2023, while Edinburgh Woollen Mill, Ponden Home and Bonmarché, delivered a turnover of £195 million and an operating profit of £8 million.

Purepay Retail's strategy has been centred on the often neglected 50+ market, with Bonmarché catering for fashion and value-conscious women within the sector and Edinburgh Woollen Mill firmly focused on casual classics and value for money for both men and women.

Peacocks has also strengthened its position in the value market by adopting a continued strategy of investment in the brand, quality and key product areas "that resonate with new and existing customers". Underpinning the strong performance is the brand's investment in denim, shirts and activewear across women’s and menswear.

Bonmarché has refocused attention on rewarding customer loyalty and experience, through upgrades to the store portfolio and a new loyalty app. Customers have also been attracted by increased regularity of new designs and the "all-year holiday shop", with swimwear being a best-seller, alongside casualwear an leisurewear.

Investment in celebrity partnerships and collaborations with social media influencers have "created excitement around the collections for customers and improved the brands fashion credentials".

Meanwhile, Edinburgh Woollen Mill has worked to leverage its diverse portfolio of high street stores and tourist focused leisure sites. With its tourist and leisure shopping sites now accounting for about half of the business, Purepay says it has identified the opportunity that recovering international tourist numbers offer.

Pureplay Retail CEO, Steve Simpson, said: "At Edinburgh Woollen Mill we have sought new store locations that tap into tourists and ‘staycationers’ attracted by our leisurewear and heritage aesthetic.

"At Bonmarché we have continued to reward devoted customers through our new loyalty programme and more frequent updates and choice in the range. Our programme of store acquisition continues as we see opportunities on high streets across the country, as well as further developing our ecommerce platform."

During the financial period, Peacocks continued to open new stores in a number of key retail locations, while also reviewing its store portfolio performance which has warranted some strategic closures. The current portfolio of 336 stores "serves as a strong foundation for future store growth".

A continued investment into the brand is highlighted by the launch of the new Peacocks website, which "will deliver enhanced shopping functionality for customers" as the business looks to grow its customer acquisition and retention. Website transactions for the year ended February 2023 achieved 40% growth.

Simpson added: "In the last two years, we have been focused on a strategy of offering our customers exceptional quality and value for the whole family. With the backdrop of a cost-of-living crisis, we have been committed to offering our customers even better products than we have done before, still at low prices.

"We have welcomed into the Peacocks family our stylish celebrity ambassadors of Louise Redknapp and Michael Owen. Their style credentials have resonated strongly with our customers and helped improve our style perception, delivering strong growth in their ranges across womenswear, menswear and lingerie.

"As we celebrate our 140th year, we remain focused on expanding our product offering to our valued customers."

During the period, Edinburgh Woollen Mill also increased its store footprint to 191 from 183, continuing to prioritise market towns, increasing store numbers in key UK tourist locations and expanding with trusted garden centre partners – with openings including St Andrews, Newbury and Barnstaple.

Bonmarché increased its store portfolio even more significantly during the period, growing from 175 stores to 201, and since then has grown to 225 Bonmarché stores across the country - with openings in Middlesbrough, St Helens, Bridport, Oban, Paisley, Thatcham, Newton Mearns, Chilton, Tring and Dalton Park.

Website traffic across both the brands was also a driver for increased sales, with orders on Edinburgh Woollen Mill jumping by 36% and Bonmarché sales rising 17.4% on the year before.