Fenwick, the well-known UK department store group, has made the decision to abandon its plans to open a new store in Guildford. Negotiations to acquire the former House of Fraser store in the town have reached a stalemate. The company had expressed interest in obtaining the 16-year lease on the spacious 180,000 square foot property, which is currently owned by landlord Canada Life. Despite no clear explanation being provided for the failure to come to an agreement, Fenwick has actively been focusing on expanding its regional retail presence. This decision comes shortly after the sale of its flagship store on New Bond Street in London for a hefty £430 million.
A portion of the profits from the sale of the London store has been set aside for investment opportunities across Fenwick’s current store portfolio. This includes the flagship store in Newcastle and the Kingston-upon-Thames location. The impact of the London store sale has already been evident in the retailer’s financial performance. Earlier this year, Fenwick reported a pre-tax profit of £57.1 million for the 52-week period ending January 28. This represents a significant improvement compared to the previous year, which saw a loss of £5.2 million.
Despite the challenges faced by the retail industry, Fenwick’s CEO, John Edgar, expressed his contentment with the performance of both the company’s online and in-store operations. He also acknowledged the strong performance of the nine existing Fenwick stores across the UK, although there is always room for further enhancement.
In conclusion, although Fenwick’s plans to acquire the former House of Fraser store in Guildford have fallen through, the company remains dedicated to bolstering its regional retail presence and optimizing the performance of its existing stores. The recent sale of the London flagship store has granted Fenwick the resources necessary to invest in its store estate, securing continued growth and success in the ever-evolving retail landscape.
Useful Links:
1. Fenwick Official Website
2. BBC News Article on Fenwick’s London Store Sale
