Celebrity means whiff of success for booming Fragrance Shop

By SCOTT REID
Published on 03/06/2012 10:54

HIGH street chain Fragrance Shop brought some cheer to the embattled retail sector yesterday as it posted strong sales and outlined plans for a further 100 stores

The firm, which operates from 135 sites, said celebrity-branded ranges and the growth of the male grooming market had helped fuel a 23 per cent jump in annual takings.

It is looking to capitalise on the sector’s growth by opening about 100 branches over the next five years, creating as many as 500 jobs.

The perfume retailer saw its sales hit £70.4 million in the year to the end of March, with best-selling products across its 700-strong range including launches from Jimmy Choo and Diesel.

It said there had been a sharp rise in sales among younger customers, including celebrity-branded fragrances such as Justin Bieber’s Someday, as well as Dazzle and Be Reem from reality TV series, the Only Way is Essex.

The sales total was bolstered by 22 store openings and growth of 9 per cent at stores open for more than a year. Underlying profits were up 24 per cent to £9.3m.

The firm said sales of male fragrances had increased at their fastest rate yet, accounting for 40 per cent of sales and fuelled by product launches such as Gucci Guilty Pour Homme.

The Fragrance Shop was founded in 1995 with a single store in Liverpool. It now employs about 700 people, including more than 100 at its head office and warehouse facility in Manchester.

Recent figures from research group Mintel show the perfume market generated UK sales of £1.4 billion in 2011, with analysts predicting growth of 45 per cent over the next five years. The report also noted that the UK was the world’s fastest-growing market.

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