The Fragrance Shop says an omnichannel strategy has driven full-year sales and profits growth. It has invested in both digital and in 18 new stores, while offering a range of subscription services.
Subscription options include the MyTFS membership subscription – whose benefits include free delivery and discounts – while its Scent Addict service allows shoppers to try fragrances before they buy and its Fragrance Match tool offers recommendations when shoppers answer questions about themselves or the person they are buying for. It also runs live shopping sessions from its home page.
The specialist independent retailer this week reports turnover of £156.8m in the 53 weeks to April 2 2022. That’s 42.5% up from the £110.04m it reported a year earlier. Like-for-like store sales – which strip out the effect of the 18 new shops that opened during the year – grew by 101% during a year in which shops were able to open for more weeks than the previous year. The number of people visiting shops was lower, but shoppers spent more. Online sales fell by 12% on the previous year, although they are 129% higher than they were before the Covid-19 pandemic.
Earnings before interest, tax and one-off costs (EBITDA) rose by 68% to £27.5m – up from £16.35m a year earlier.
Both turnover and profit figures represent an improvement from the pre-pandemic 52 weeks to March 31 2020, when the retailer turned over £120m and reported an EBITDA profit of £14.9m. Online sales are also 129% higher than before Covid-19.
The Fragrance Shop chief executive Sanjay Vadera says: “Despite the seismic events of the past few years and current macro-economic trends, we are a business that’s in confident mood, delivering to both the top and bottom line as we spray a little happiness to our customers both in store and online.
“I want to thank our people for their commitment to the business and our customers – their resilience and entrepreneurial spirit continues to inspire me every day.”
The Fragrance Shop has now agreed a lease on a new low-carbon headquarters and distribution centre, which features air source heat pumps and more than 6,000 sq ft of solar panels.
The Fragrance Shop is ranked Top50 in RXUK Top500 research.