Strong online trading boosts Bonmarche

Over 50's fashion retailer Bonmarche '‹has '‹reported strong online trading '‹following a revamp of its catalogue and a focus '‹on fit, quality and fashion.
Bonmarche's Spring/Summer linen collection is proving very popular with customersBonmarche's Spring/Summer linen collection is proving very popular with customers
Bonmarche's Spring/Summer linen collection is proving very popular with customers

The Wakefield-based budget fashion chain​ is bucking the retail downturn by zeroing in on exactly what its customers want.​

​Helen Connolly, chief executive of Bonmarche, said:​ "We're delighted with the improvement in online sales.

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"We've got some key areas that are driving sales. Swimwear is doing particularly well online​ and we have increased the number of online exclusives.

"We are selling fabulous prints, swimwear with tummy control and additional leg and skirt lengths. You can get five different leg lengths online compared with two lengths in store."

She was speaking as the group announced a 38 per cent leap in pre-tax profits to £8m in the year to March 31. A 35 per cent jump in online sales offset tougher high street trading, with like-for-like store sales down 4.5 per cent.​ P​rofits ​rose​ 27​ per cent​ on an underlying basis.

Fiona Cincotta, ​s​enior ​m​arket ​a​nalyst at​ City​ I​ndex​,​​ said: “At a time when the likes of Marks & Spencer, Mothercare and even retail market darling Ted Baker have issued disappointed results, Bonmarche has stood out with an attractive set of figures.

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“Revenue was always expected to be lower, given weak consumer confidence and some nasty weather earlier this year​, b​ut overheads and stock volumes have been deftly kept under control, all while the company has improved the appeal of its designs and grown online sales at an impressive clip.​"​

​The group's t​otal revenue ​fell from £190m to​ £186​m.

​Ms Connolly said the high street will remain tough for the foreseeable future​ although Bonmarche's clear target market means it is on track to meet full year expectations.

​"We are one of the few retailers that target our market. Our customers want great fit, quality and fashionability,"​ she said.

Ms Cincotta added: ​“Conditions for retailers remain tough and pressure on sales will likely persist until consumers get a clearer view of where Brexit negotiations, interest rates and the size of their pay packets are heading. But it at least looks like the rot has stopped at Bonmarche.”

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Following strong sales​ of denim, where sales are up 50 per cent year on year, the group said it is very pleased with its new Spring/Summer linen range.

"Linen is performing really strongly," said Ms Connolly.

"We've introduced new styles and prints."

The group said there is a trend towards more casual styles rather than formal, such as blouses that are worn with denim and dresses that can be dressed up or down.

Ms Connolly said the group has also introduced a much more agile supply base.

"We know what's hot. Our suppliers are working really hard with us,"​ she added.

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​​The group said trading since the year-end had been stronger and current trading is in line with board expectations.

Bonmarche has been revamping its online offering after ​disappointing​ website sales in 2016-17, making it more customer-friendly and improving its marketing tactics.

The group also cut costs where possible to counter difficult retail conditions and a hit from the weak pound, which pushed up buying costs.

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