Positive results for catalogue traders despite tough economic times
October 17, 2011 by Gareth
N Brown, one of the UK’s largest home shopping groups, has posted positive results surrounding its sales figures, despite a challenging economic climate.
N Brown is a home shopping network that operates both online and via printed catalogues and is home to a portfolio of brands including JD Williams and High and Mighty. The company recently posted its half-year profit results showing a 4% increase in sales, up on last year.
However, when costs for things like new storage space and some acquisition work is taken out, the sales increase sits at 1.5%. Whilst being a small increase, it is still positive news for brands that operate via mail order, whether this is through shops that are hosted online or are showcased via catalogue printing.
Croydon-based Long Tall Sally is another mail order home shopping business that is based online and also allows consumers to buy via a catalogue; as is Liverpool-based Littlewoods, part of the Shop Direct Group. These companies may gain confidence from seeing N Brown’s positive results for the first half of the year.
Despite these positive results, the N Brown group have faced some tough challenges. There has been a price rise of 8% due to the rising cost of raw materials and the cost of overseas labour. The group will be aiming to trade somewhat aggressively in the run up to Christmas to ensure that to final annual results stay positive. The Chairman of N Brown, David Alliance, stated:
“The outcome for the year will be determined by customers’ attitudes to Christmas shopping for both clothes and gifts and also the year-on-year weather patterns.”