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Published
Nov 21, 2016
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Bonmarché announces 63% drop in profits

Published
Nov 21, 2016

Bonmarché, one of the UK's largest women's value retailers revealed on Monday its unaudited results for the 26 weeks to 24 September.


Bonmarché


In the period, the retailer saw total revenue decrease 4% to £93.1m while store like-for-like sales fell 8.6%. Online sales, which usually offer retailers a bright spot, were down 1.1%.

Bonmarché opened 12 new stores and concessions and relocated three stores in the first half of the year. It launched a national TV adverting campaign in September 2016 and completed its programme to replace fascias in all stores.

It also launched a programme to modernise its 20-year-old ERP system and its point of sale infrastructure.

Profit before tax plunged 63% to £2.0m, from £5.4m in the first half of the previous year. Despite the challenging trading conditions, Helen Conolloy, CEO said she remains confident that the business will return to growth during FY2018.

“I believe that Bonmarché has significant potential to grow as a retailer serving the 50 plus women’s value clothing market, a belief that has strengthened with my continued exposure to the business. Work has already begun, to modernise and simplify our operations and improve basic disciplines - key foundations for the more strategic priorities of developing the customer proposition and improving customer journeys,” she said.

Established in 1982, Bonmarché has more than 30 years of experience in the growing 50 plus women’s value clothing segment, operating across the UK.

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