Fenwick Bond Street closure mitigates losses and funds modernisation as sales decline

Fenwick’s decision to shut its historic Bond Street store has played a significant role in narrowing annual losses for the renowned department store chain. While this strategic move succeeded in improving the company’s bottom line, it also contributed to a drop in turnover. Fenwick’s revenue fell to £177 million for the year ending January 2024, down from £184.2 million the previous year, reflecting the impact of the store closure and ongoing economic pressures on consumer spending.

The sale of the iconic Bond Street premises secured £430 million for the retailer, with proceeds channelled into loan repayments and investments across its portfolio. As a result, Fenwick’s pre-tax loss on ordinary activities reduced to £36 million, a marked improvement from the £49.1 million loss registered in the prior financial year. Cash reserves decreased by £94.2 million, leaving the group with a cash balance of £84.9 million, primarily due to settling a substantial £60 million external loan.

Founded in 1882 by John James Fenwick, the business remains under family ownership and operates eight department stores along with its online platform. The remaining sites include locations in Newcastle upon Tyne, Kingston upon Thames, Brent Cross, York, Canterbury, Colchester, Tunbridge Wells and Bracknell. As of January last year, Fenwick employed 1,569 staff across its UK operations.

Like many traditional retailers, Fenwick has grappled with the challenge of adapting to shifting consumer habits, the surge in online shopping and the financial aftermath of the pandemic. To address these pressures, Fenwick brought in restructuring experts from AlixPartners, prompting industry speculation about the possibility of more store closures and job cuts. The proceeds from the Bond Street sale have been earmarked for refurbishment and digital investment, underpinning a wider plan to modernise the business and restore growth.

Recent initiatives include launching new in-store concepts such as a Newcastle United premium retail space, a Greggs Champagne Bar and a Barbour Café within the Newcastle flagship. Infrastructure improvements have featured the migration to an updated web platform and the unveiling of a £40 million beauty hall in Newcastle.

Sian Westerman, Fenwick’s chairwoman, noted the results signal “important progress” as the company reshapes itself for long-term sustainability. Executive deputy chair Mia Fenwick commented that the business is evolving quickly to meet contemporary customer expectations while remaining loyal to its heritage. The forthcoming period promises to be critical as Fenwick doubles down on digital transformation and seeks profitable growth in a tough retail environment.