January 2011

The Original Factory Shop, the discount retailer, delivered a 5 per cent spike in underlying sales over Christmas, following a surge in demand for Wellington boots during the cold snap.

The chain, which is owned by the private equity firm Duke Street, sold more than 100,000 wellies over the six weeks to 26 December, an average of one pair every nine seconds.

Total sales at Original Factory Shop's more than 160 UK outlets jumped by 23 per cent and by 5 per cent on a like-for-like basis.

While footfall into its high street stores was affected by the snow, shoppers stepped up their purchases of gifts and items such as fleeces.

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18 Jan 2011 by The Independant

Discount retail chain The Original Factory Shop said it broke sales records over Christmas as the extreme weather boosted demand for outdoor clothing and wellies.

The Burnley-based group, which operates more than 160 stores across the UK, racked up its highest-ever sales in a day on December 23, only to smash this figure by eight per cent the following day.

It sold more than 100,000 wellington boots over the Christmas period - an average of a pair every nine seconds - as the snowy weather caused an unprecedented surge in orders.

OFS said sales rose 23 per cent over the six weeks to December 26 compared with the previous year, with like-for-like sales up five per cent.

Chief executive Angela Spindler said: "As a business with stores across most regions in the UK, we were undoubtedly impacted by the severe weather conditions.

"However, the combination of our loyal customers still coming out to shop and our ever-committed colleagues still coming to work meant that we were still able to deliver an excellent trading performance."

She said the company benefited from particularly strong sales of gift items in the final week before Christmas as customers chose to shop locally for stocking fillers.

The retailer also reported record sales of advent calendars, with those designed for pets proving three times as popular as traditional calendars.

Original Factory Shop opened 31 stores in 2010 and plans to open 35 this year, which will bring its total to nearly 200. Original aid shopper numbers were reduced by the snowfall, but those able to reach the stores bought more gifts and essential items.

Electric heaters, fleeces, jackets and socks sold well, according to the firm. It claims to be one of the fastest growing retailers in the UK after increasing its sales by 73 per cent and its store numbers from 99 to more than 160 over the past two years.

Original has identified another 400 locations in which it believes it could trade and is in the process of doubling the size of its warehouse in Burnley to service its expansion plans.

The chain started life in 1969 as an outlet for unsold Marks & Spencer stock and is owned by private equity firm Duke Street. It currently has about 2,600 employees and annual revenues of more than £132m.

It reported double-digit profits growth in 2010 for the fifth year in a row.
 

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18 Jan 2011 by Manchester Evening News

General retail chain The Original Factory Shop said it broke sales records over Christmas as the extreme weather boosted demand for outdoor clothing and wellies.

The group, which operates more than 160 stores across the UK, racked up its highest-ever sales in a day on December 23, only to smash this figure by 8% the following day.

It sold more than 100,000 pairs of wellington boots over the Christmas period - an average of a pair every nine seconds - as the snowy weather caused an unprecedented surge in orders.

The Burnley-based group said sales rose 23% over the six weeks to December 26 compared with the previous year, with like-for-like sales up 5%.

Chief executive Angela Spindler said: "As a business with stores across most regions in the UK, we were undoubtedly impacted by the severe weather conditions.

"However, the combination of our loyal customers still coming out to shop and our ever-committed colleagues still coming to work meant that we were still able to deliver an excellent trading performance."

She said the company benefited from particularly strong sales of gift items in the final week before Christmas as customers chose to shop locally for stocking fillers.

The retailer reported record sales of advent calendars, with those designed for pets proving three times as popular as traditional calendars.

Original - which sells discounted brands - said shopper numbers were reduced by the snowfall, but those able to reach the stores bought more gifts and essential items. Electric heaters, fleeces, jackets and socks sold well, according to the firm.

Original Factory Shop opened 31 stores in 2010 and plans to open 35 this year, which will bring its total to nearly 200.
 

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18 Jan 2011 by Press Association

Accessible high street locations and shoppers in search of a bargain combined to produce record Christmas sales for the Original Factory Shop, in spite of the snowy weather.

The chain, which is owned by private equity group Duke Street, sells discounted branded merchandise and homewares reported a 5 per cent like-for-like sales increase in the six weeks to December 26, rising to 23 per cent when including the contribution from newly opened stores. This is in stark contrast to larger national multiples, which have blamed the snows for negative trading figures.

The bad weather did not prevent the opening of eight new stores in the period, taking the total of stores opened this year to 31. All trade from local high street locations, and Angela Spindler, chief executive, said higher levels of walk-up trade had been a clear advantage.

"Obviously footfall was down in the snows, but because we're a local retailer, those people who could get to us really increased their spend, buying gifts and stocking up on essentials," she said. Electric heaters, fleeces, jackets and socks all did well, and wellington boots were being sold at the rate of one pair every nine seconds.

In December, the surprise best-seller was advent calendars for pets, which outsold the human version at a ratio of three-to-one. "People might be feeling the pinch but they won't stint on giving their pets a treat," she added.

Ms Spindler, the former managing director of Debenhams (LSE: DEB.L - news) , believes the motivation to bag a bargain is driving custom to the store, which announced its fifth consecutive year of profit growth last year.

"Because a significant part of our offer is discounted brands, shoppers think they're getting value for money, rather than just a cheap product," she said. "We also believe the local dimension will help us in 2011, as petrol prices rise and it gets more expensive to shop further afield." She (news) added the Original Factory Shop will not pass on the cost of the VAT increase until the end of January.

The group hopes to secure some bargain rents on Britain's increasingly desolate high streets this year, with an ambitious target of opening 35 stores, taking its total number of outlets to nearly 200. These will include up to six in Northern Ireland, and a large number in smaller coastal towns that are popular low-cost holiday destinations.

"There is not a lot of competition for our sites, and our model is predicated on paying rock-bottom rents," Ms Spindler said. "We feel we bring something to smaller high streets where other stores have closed down. The fact that sales are working very well is as much to do with our product offer as the catchment area of these isolated local towns," she said.

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