Fashion chain M&Co eyes 75 new stores as profits grow
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The chain – owned by Renfrew parent company Mackays Stores Group – already has nearly 300 stores, including some overseas, making it one of the largest privately-owned fashion retailers in the UK.
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It plans to open the additional sites over the next five years, after posting increased annual profits of £6 million for the year to February.
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Hide AdA recent programme of store refurbishments, investment in new technology and advertising campaigns has seen operating profits rise by 37 per cent during the period.
Chief executive Andy McGeoch said annual sales, net of VAT, had nudged higher to £165.6m while the firm now had “the best foundations for further long-term growth that we’ve seen in many years”.
Outlining the growth plans, he said: “The high street is still a challenging environment, with high business rates, cost inflation and international currency fluctuations denting our buying power with suppliers.
“However, we will continue to invest in refreshing the appearance of our stores, with over half now having benefited from refits. Our core strategy of taking prime positions in market towns continues. Our first-half results, in the current financial year, are showing further positive progress in like-for-like sales.”
McGeoch added: “We are actively seeking further expansion and are planning to open a further 60-75 new stores across the UK by 2022.”
The openings are likely to boost many small town centres blighted by the closure of shops and banks.
McGeoch said: “We own a quarter of our trading estate, and with debt reduced by £1.1m during the financial year to £10.5m and the five-year facilities in place with HSBC, we have a great platform to grow the business further.”
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Hide Ad• READ MORE: M&Co owner sews up swing to full-year profit
M&Co employs almost 3,500 staff across the UK throughout its stores, head office and support facilities. It also has a number of concession formats presenting “significant opportunities in the coming years” and operates 25 international franchise stores in 12 countries.
McGeoch added: “So far this financial year we have opened new stores in Essex, Yorkshire and Wales and a number of further new openings are planned before the financial year end.
“E-commerce sales continue to grow strongly, with the brand offer now reaching a UK and global customer audience beyond our store catchment areas. Our e-commerce strategy complements our store base.”
The latest full-year results reveal that underlying earnings were up by 16 per cent to £11.1m, while like-for-like sales grew by 1.8 per cent. There was also an improvement in gross margin from 21.9 per cent to 23.7 per cent.