Peacock opening 100 stores in a year

British high street retailer Peacock said today it was on course to open 100 stores in a year as part of an expansion drive likely to create 1,300 new jobs.

The Cardiff-based group, which has around 800 outlets, said more than half of the planned new sites were already operating, bringing it closer to its aim of eventually having around 1,400 stores under its three brands.

The expansion, which the group started in the summer and should take a year to complete, came as the retailer shrugged off competition from supermarkets in the value clothing market to post a 24% hike in half-year profits.

Chief executive Richard Kirk believed there was scope to boost the 411-strong Peacocks chain to 700, while Bon Marche could eventually increase its number of sites from 336 to 550 and the Fragrance Shop from 36 to 150. It has never previously given details on its expansion strategy.

Profits of £14.3m (€20.6m) in the 26 weeks to October 2 were driven by strong performances by Peacocks and the newly-acquired Fragrance Shop.

Peacock said group like-for-like sales rose 3.4% as shoppers increasingly chose “value” ranges over more expensive ranges sold by high street rivals.

Trading at Bon Marche, which sells clothes for women aged 45 and above, was disappointing by comparison, with same-store sales down 7.2% after poor weather kept shoppers away.

The group said the introduction of clothing ranges that put a greater emphasis on contemporary styles and quality had helped Peacocks counter the threat from supermarkets such as Asda and Tesco.

Like-for-like sales improved by 9% on the back of strong demand for womenswear and footwear, while refurbished stores continued to perform significantly better those awaiting conversion.

Peacock refitted 57 of its stores in the period, opened 15 outlets, relocated one and closed one.

Some 68% of the chain is now trading in the new format.

At the same time, like-for-like sales at the Fragrance Shop were 9.5% higher than a year ago during a period when demand is traditionally low.

The Fragrance Shop was acquired in June and eight new stores have already been opened, with the group on track to meet its target of adding 20 new stores over the full year.

Investors were reassured that turnaround measures at Bon Marche were continuing to bear fruit, with like-for-like sales restored to growth in the final weeks of the period.

Peacock said it had plugged gaps in its product range by overhauling its buying and merchandising teams, while old stock was kept under tight control.

Trials were also taking place of a new shop format at the 23 stores opened in the period and five existing outlets, the group said.

Shareholders are in line to receive an interim dividend of 3p, which was up 20% on a year ago and reflected the confidence of Peacock in its future prospects.

Shares fell 2.5p to 258.5p today.