House of Fraser hails internet shopping boom

Department store chain House of Fraser, owner of Edinburgh institution Jenners, has delivered record sales and profits, driven by the boom in internet shopping.

House of Frasers have heralded internet shopping boost. Picture: PA

Along with rivals such as John Lewis and Next, the firm has been revamping its online offering and now lets customers shop for more than 1,200 brands via its website.

Despite facing “difficult” market conditions, House of Fraser has defied the gloom afflicting other parts of the high street and posted a gross profit of £403.8 million for the year to 26 January, an increase of 
4.3 per cent on the previous year.

Sales grew 3.3 per cent on a like-for-like basis to £1.2 billion, boosted by a 53 per cent jump in online takings, which now account for almost 11 per cent of the total.

House of Fraser, which has 60 stores across the UK and Ireland, was taken private in 2006 and is part-owned by nationalised Icelandic lender Landsbanki. Other shareholders include entrepreneur Sir Tom Hunter and Don McCarthy, the retailer’s chairman.

McCarthy said the firm expects economic conditions to remain subdued, but he was confident of continued growth “for the foreseeable future”. He added that the strong trading performance had continued into the new financial year, with like-for-like sales up 4.8 per cent in the 13 weeks to 27 April.

The chain, which cut its net debt pile by £6.2m to £157.2m, is reported to have attracted the interest of the Qatari royal family, who bought Harrods for £1.5bn three years ago. House of Fraser owned Harrods between 1959 and 1985.