EWM, Bonmarché and Peacocks bounce back under new ownership

We’ve not heard a lot about Edinburgh Woollen Mill (EWM), Bonmarché and Peacocks in recent years but it appears that the businesses — under CEO Steve Simpson — have been quietly returning to profitability and their latest accounts filings show they made a strong comeback in the 12 months to late February 2023.

Looking first at EWM and Bonmarché that were acquired out of administration in 2020, they trade as Purepay Retail Ltd, which said the brands “delivered a strong and robust turnover of £195.094 million and operating profit of £8.07 million”.

The firm’s strategy for the brands is “centred on the often neglected 50+ market”, and it said Bonmarché “has refocused attention on rewarding customer loyalty and experience, through upgrades to the store portfolio and a new loyalty app. Customers have been attracted by increased regularity of new designs and the all-year holiday shop, with swimwear being a bestseller, alongside casual and leisurewear”.

Investment in celebrity partnerships and collaborations with social media influencers have also been key.

EWM “has worked to leverage its diverse portfolio of high street stores and tourist-focused leisure sites”, the latter now accounting for about half of the business.

Tourist opportunity

Purepay said it has “identified the opportunity that recovering international tourist numbers offer”.

To drive both arms of the business, EWM has been “working to try and plug the gap for its high street customers that was left by the loss of the high street department store by offering a wider choice of categories across casual fashion, heritage accessories and homewares, under [the] Ponden Home [brand]”.

And while knitwear “continues to be the mainstay of the brand, in-house designed prints in tops and dresses have helped forge growth across all clothing categories”.

It added that the tourist arm has adapted its offers in product and experience to cater to the changing mix of international customers, having been predominantly from Asia pre-Covid to increasingly North American and European today.

During the period, the brands also focused on the development of the store estates and websites. EWM increased its store footprint to 191 from 183 in the period, continuing to prioritise market towns, increasing store numbers in key UK tourist locations and expanding with garden centre partners.

Bonmarché also grew from 175 stores to 201 and has grown further following the reporting period to 225 stores across the country.

The company also said web traffic across both the brands has been a driver for increased sales, with orders on EWM’s site increasing by 36%, while it’s seen a 17.4% uplift at Bonmarché .

Meanwhile, Peacocks, trading as Anglo Global Property Limited, also announced a return to profitability, having generated a turnover of £238 million and an operating profit of £14.65 million for the year.

Since the post-administration restructuring of the business in 2021, it has “strengthened its position in the value market by adopting a continued strategy of investment in the brand, quality and key product areas, that resonate with new and existing customers”.

Underpinning the performance was investment in denim, shirts and activewear categories across both women’s and menswear.

The chain also focused on the development of its store estate with both openings and strategic closures. The current portfolio of 336 stores “serves as a strong foundation for future store growth”.

It launched a new Peacocks website and transactions during the period saw 40% growth.

Steve Simpson said: “In the last two years we have been focused on a strategy of offering our customers exceptional quality and value for the whole family. With the backdrop of a cost of living crisis we have been committed to offering our customers even better products than we have done before, still at low prices.

“We have welcomed into the Peacocks family celebrity ambassadors of Louise Rednapp and Michael Owen. Their style credentials have resonated strongly with our customers and helped improve our style perception, delivering strong growth in their ranges across ladieswear, menswear and lingerie.”