Multichannel boost for N Brown

Home shopping group N Brown’s full-year profits came in a little shy of some analysts’ expectations but all sorts of developments are under way which should position the retailer well for the future.

At the heart of the changes is multichannel retail, which is opening the door to new customers and new ways of doing business.

N Brown’s average customer is aged 58 with a dress size of 18. The retailer’s specialisation in the older, plus-size market is a strength, even though that demographic has proved cautious about spending.

However, the development of online retail has brought access to a bigger base of customers. The retailer cited online customer recruitment, effective email campaigns and website improvements as among the factors that took online sales above 50% of the total for the first time. Online revenues climbed 16% over the year and the Figleaves business, acquired a couple of years back, made the first profit in 13 years.

Sales of product only available online increased by 29%. While sales to N Brown’s traditional customer base advanced just 1%, turnover from customers aged between 30 and 50 jumped by 13%.

Online sales are also more profitable. There are lower costs involved and web orders typically have a higher value – 25% greater than telephone orders, for instance.

But the vast majority of clothing sales are of course made in high street shops, and N Brown is dipping its toe into bricks-and-mortar retail with Simply Be stores. Two stores opened last autumn and sales so far have totalled £700,000. More are planned.

Add to such changes in the domestic market a fledgling international business – albeit one that has experienced a couple of teething problems, such as the rate of returns in Germany – and N Brown ticks many of the boxes likely to indicate growth to come.

N Brown may make its money from older shoppers, but it doesn’t yet look like a mature business itself.