Growth announced at different ends of the market!
Burberry the luxury fashion firm said total sales rose 10% to £1.4bn in the six months to the end of March. Burberry’s chief executive Christopher Bailey, who took over from Angela Ahrendts in May last year, said new products had helped to boost sales. “We anticipate external challenges will continue in the current year, but remain confident in our long-term strategy to build the Burberry brand and business globally,” he added. The firm opened seven new stores in the half-year, including flagship ones in Los Angeles and Japan’s Osaka.
Budget retailer Poundland has reported annual sales of more than £1bn. Total sales in the UK and Republic of Ireland rose by 11.8% to £1.1bn, helped by the opening of 60 new stores. Like-for-like revenues – which strip out the impact of new stores – rose 2.4% in the year to 29 March. Chief executive Jim McCarthy said: “Despite tough trading conditions, Poundland continues to perform well and we served an average of 5.3 million shoppers a week during the quarter.” Poundland will report its full-year results on 18 June, and said it expected underlying pre-tax profits to be in line with market forecasts of about £44m.
Two very different retailers with similar stories of growth and development. Opening new stores seems to have driven sales growth. One wonders where in the UK their new stores were located. Might there be a North South divide?