Despite being compelled to shut shops for almost all of the monetary yr to 31 March 2021, The Fragrance Shop, the UK’s main unbiased perfume retailer, in the present day confirmed robust buying and selling for its monetary yr to 31 March 2021.
The vital progress in on-line gross sales largely offset the anticipated decline in retailer gross sales due to the sequence of enforced closures ensuing from the measures taken to handle the pandemic.
While the form of the enterprise has modified dramatically within the final 12 months, accelerating The Fragrance Shop’s transformation right into a “phygital” retailer, with a high-growth digital enterprise complementing the bodily excessive road community, that has accelerated the enterprise’ present trajectory.
Key stats abstract
Decisive motion to speed up the expansion of on-line operations, mixed with the nationwide progress in e-commerce, noticed on-line gross sales rising by 164 per cent within the monetary yr. Over the interval, the proportion of gross sales from its on-line channels nearly tripled from 20 per cent of the group whole to 56 per cent. Overall retail gross sales on the group fell by 4.7 per cent because the enterprise confronted a pointy drop in footfall on the town centres and buying centres and the impression of non permanent retailer closures to adjust to lockdown rules throughout the UK. Unsurprisingly, retailer gross sales had been down 47 per cent as The Fragrance Shop needed to shut shops for round seven of the 12-month interval. However, within the monetary yr The Fragrance Shop nonetheless opened one new location taking its property to 199 shops. It expects to open six extra this monetary yr together with retailers in Cambridge and Exeter. Despite lockdown, closed shops had been re-purposed to supply a click on and fulfil service to restrict the necessity for furlough and higher handle inventory ranges throughout the entire enterprise. Overall, gross retail gross sales had been £128m for the yr to March 2021. Group EBITDA was £15.4m, pre-exceptional objects.
Driving on-line progress
The work achieved to create a brand new digital platform in 2019 meant The Fragrance Shop was effectively positioned to speed up on-line progress to fulfill demand as UK buying habits modified quickly due to the pandemic.
And the energy of its model constructed over twenty years additionally enabled The Fragrance Shop to pivot assertively on-line. Innovations on-line which have pushed progress embody:
The “perfume match” service that guides prospects by the large vary of choices out there and helps them make the proper alternative, whether or not they’re searching for themselves or shopping for a present. The three-tier MyTFS membership programme providing 20 per cent off vouchers, excusive presents and free supply is rising quickly. The integration of the ScentAddict subscription service into the principle Fragrance Shop platform now lets prospects attempt one among 500 new scents each month for simply £12.
But retailers are nonetheless important
Because shopping for perfume is a sensory expertise, The Fragrance Shop nonetheless expects a powerful, thriving retailer community to be a significant a part of its future.
The profound impression on the excessive road noticed shops closed for round seven out of the 12-month interval and a major drop in footfall after they have re-opened.
The Fragrance Shop expects footfall on the town centres to stay subdued for a while and can adapt the enterprise to handle this new atmosphere. It is working intently with landlords to agree phrases that imply retailers can stay financial and a part of a restoration on the excessive road
It has efficiently renegotiated leases on a turnover mannequin with round half of its landlords aligning property prices to future expectations on footfall.
Despite the challenges confronted as a non-essential retailer, The Fragrance Shop has managed to modestly develop its retailer property and preserve employment at pre-pandemic ranges.
Working with trusted suppliers
Strong collaborations with our model companions have helped us to take care of provides/have product in-stock. During the yr, high performing manufacturers have included Chanel and Dior as luxurious perfume continued to carry out.
Sanjay Vadera, chief government of The Fragrance Shop, mentioned: “Unprecedented instances have offered us with monumental challenges, however I couldn’t be prouder of the best way everybody within the enterprise has pulled collectively to get us by this troublesome interval.”
“A mix of self-help and authorities help, for which we’re grateful, has steered us by turbulent instances and left us effectively positioned to rebuild, because the economic system will get again on its toes
“The work we’d already achieved on strengthening our on-line platform supplied the foundations on which we had been in a position to develop our digital supply to fulfill the dramatic change in prospects’ buying habits. This shift to on-line buying is barely going to develop stronger and we see this as an enormous alternative.
“We’re underneath no illusions that the approaching months will nonetheless convey challenges, we’re already welcoming prospects again by our doorways and enjoying our half within the excessive road’s restoration.”