Boden to expand number of stores in key markets

http://www.theguardian.com/business/2015/sep/14/boden-to-expand-its-stores-in-key-markets

Version 0 of 1.

Boden, the fashion retailer for middle class families who like a splash of colour, is planning to open a number of stores, including a new outlet in or around London.

The firm, which has always been a mail order and internet business and counts David and Samantha Cameron among its customers - said it was looking to open stores in both the UK and the US. “We’re set to open a number of Boden retail outlets in the next few years in key markets,” said a spokeswoman. “We’ll look at it on a case-by-case basis,” she added.

The privately owned company, which sells mainly to its 1.6 million active customers direct via its catalogue or online, currently has only one store, in the Hanger Green area of west London. The decision to expand its physical presence on the high street comes as it revealed a rise in profits of 31% to £32m from sales of nearly £281m.

However, the group warned that current trading has been tough with margins under pressure in all markets, although sales growth was still expected.

More than 50% of the group’s sales come from outside the UK: French sales were up 34% on the year, and the company increased its customers by 13% in the US market.

Mini Boden, the range for children, also increased sales and profitability substantially.

The clothing firm, founded 24 years ago as a mail order business, said it had continued to increase in web traffic: it had 23m unique visitors in 2014, 15% up on the previous year. Online trade now accounts for 90% of sales.

Boden has turned up the fashion dial in recent years and fashion editors have selected a navy military-inspired Boden skirt as one of this season’s must-buys. The firm said it had also benefited from increased productivity in the group’s US warehouse; getting costs under control; and improvements in the delivery times in the UK (two-to-three days are now standard).

Boden said on Monday it has begun searching for a new chief executive to replace Julian Granville who has been appointed deputy chairman.

Granville came on board 20 years ago to help Old Etonian founder Johnnie Boden with the business when it was on the brink of collapse. He helped bring in funding from Piper, a private equity group, and helped Boden establish itself as a premium mail order and digital-only brand. Johnnie Boden is the group’s largest shareholder with a 60% stake.

“There’s a process going on and we will make an announcement as soon as the new CEO is in place,” said the spokeswoman, adding that Granville’s move was part of a structured succession plan.

The company said it had appointed Matthew Hilgeman, who joins from American Eagle Outfitters, as product director.