Advertisement

House of Fraser reaches record Christmas sales

House of Fraser on Monday reported record sales during the festive season despite a difficult 2012 for retailers in general.

House of Fraser on Monday reported record sales during the festive season despite a difficult 2012 for retailers in general.

The department store announced a 6.3% rise in like-for-like sales as online purchases doubled in the six weeks to January 5th.

Fashion and beauty products were among the biggest sellers as consumers stocked up on gifts for Christmas.

Advertisement - Article continues below

The results mean House of Fraser will be able to meet its target for a 2.4% increase in earnings this year.

The privately-owned group, which has 60 stores in Britain and Ireland, had slashed prices before Christmas with discounts of up to 50% on party dresses and beauty products, including makeup and perfume.

The company's Chairman, Don McCarthy, said they had reaped rewards from investing in their website, promoting house brands, and focusing on their fashion products.

House of Fraser defied a tough year for retailers in 2012. Disposable incomes of consumers remained squeezed, putting pressure on profit margins of the sector.

JJB Sports, Clinton Cards, Game Group, Comet and HMV were among the victims of a retail sector struggling to adapt to changing consumer spending habits, said Michael Hewson, Senior Market Analyst at CMC Markets.

The industry faces another difficult year unless the UK economy improves and average earning start to align with inflation, he added.

RD

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
We’re spending more than at any time since World War II – how will we pay it back?
UK Economy

We’re spending more than at any time since World War II – how will we pay it back?

With the UK spending vast sums on stimulus measures, this year’s budget deficit will be greater than at any time since World War II. The big question,…
14 Jul 2020
Why the moving average is my favourite charting tool
Sponsored

Why the moving average is my favourite charting tool

Traders and technical analysts use "moving averages" to iron out daily fluctuations and give a much clearer picture of a market's direction. Dominic …
13 Jul 2020