Biba is the top name in the House for store group

SIXTIES fashion label Biba has been a runaway success for House of Fraser as the department store chain strives to raise its margins through sales of in-house designs.

Biba, originally founded by designer Barbara Hulanicki, has become House of Fraser's top-selling women's wear label less than two weeks after its relaunch on 9 September. Its success helped drive a 10 per cent rise in like-for-like sales across the privately-owned chain during the seven weeks since 31 July.

Like other groups, House of Fraser has been focusing on in-house labels, which tend to be more profitable than concession sales of third-party designs. The group aims to raise own-label revenues to as much as 40 per cent of its sales mix, up from 11 per cent currently.

The success of other house brands such as Casa Couture and Label Lab pushed sales of own-brand products 62 per cent higher during the six months to the end of July. House of Fraser's total turnover during the period rose 5.5 per cent to 480.6 million, producing 13m in core earnings, up from 10.7m last time.

The results from the UK's third-largest department store chain, led by chief executive John King, did not include individual returns by House of Fraser's 61 stores across the UK and Ireland. However, a spokesperson for the group said the Biba "Lilly Print" dress had been among the best-sellers in Scotland.

House of Fraser has three eponymous stores in Glasgow and Edinburgh, and also owns Jenners in the capital and at Loch Lomond.

"We are encouraged by the strong demand for our house brands from our customers, and particularly pleased with the recent launch of Biba," King said. "We are confident we will continue to deliver in the second half of the year and beyond as we continue our brand and operational developments."

During the first half, House of Fraser also benefited from a 150 per cent rise in online sales. The group is targeting annual web sales of 200m within three years, versus the 35m generated during the past 12 months.

Shoppers can currently purchase more than 700 brands online from House of Fraser. That is set to rise to more than 1,000 during 2011. The group is currently refurbishing a number of its stores, and is also working on plans to open its first outlet in the Middle East.

House of Fraser was bought by a consortium led by the now defunct Icelandic retail investor Baugur in a 351m deal in 2006. After Baugur's collapse last year, its 35 per cent stake reverted to fellow Icelandic bank Landsbanki.