The Northern-based retailer, which sells cut-price goods ranging from sport shoes to duvets at 180 shops across the UK, said sales at stores open for more than a year were up 5.5 per cent in the three months to the start of July.
Total sales grew 12.5 per cent and underlying earnings were up more than 20 per cent – although no sums were disclosed.
However, The Original Factory Shop (TOFS) admitted its expansion continues to be tempered by the bleak consumer climate.
It plans to open 15 new stores this year, up from 11 last year but down from 35 in 2010.
“We’re not doing that because the (economic) climate is quite unpredictable,” said chief executive Angela Spindler.
“Anybody who’s not made some adjustments based on the climate would be very brave.
“We are swimming upstream strategically and bucking the trend by opening stores and trading strongly on Britain’s small town high streets. We look forward to continued momentum and growth in 2012.”
Ms Spindler, a former senior executive at Asda and previous managing director of Debenhams, said the chain’s performance was in stark contrast with the woes of its much bigger rival Marks & Spencer.
“A good barometer of the sector is Marks & Spencer – 6.8 per cent down in general merchandise (GM),” she said.
The UK’s biggest clothing retailer, M&S last week said sales at UK stores open more than a year fell 2.8 per cent in the 13 weeks to June 30 – the firm’s biggest quarterly drop in sales since the third quarter of 2008/09.
That was led by the steep fall in GM – clothing, footwear and homewear – while food sales were up 0.6 per cent.
Burnley-based TOFS, which opened its first store in Keighley in 1969, was established as an outlet for Peter Black’s, selling factory seconds, including some M&S lines.
Backed by private equity firm Duke Street Capital, it has 15 stores in Yorkshire, at locations including Ilkley, York and Otley. The chain has opened eight of its 15 planned new stores this year, including one in Hornsea, East Yorkshire.
TOFS employs 2,600 staff and targets towns with a population of around 15,000. It has a medium-term target of 450 stores and a long-term aim of 600 stores.
Ms Spindler said the chain’s success was due to a combination of “what we sell, where we are and our value for money”.
“We are very relevant to how people are thinking and will continue to think for the foreseeable future,” she said. “It’s unique. No-one is doing what we are doing.”
TOFS sells brands including Adidas, Dolce & Gabbana, DKNY and Black & Decker.
Ms Spindler said while others are retreating from the high street in the face of fierce online competition, TOFS has much more scope for growth.
“Many retailers are articulating the same story – they only want prime locations or major malls and the rest of the population can buy into their offer online.
“That’s not what we’re doing.
“I absolutely believe there will always be a place for shopping and being able to get great value for money and choice on your local high street.”
The chain’s growing online offer “complements” its in-store offer – selling goods such as beds and washing machines which cannot be bought in-store. The website booked sales of £2m in 2011. TOFS also recently launched an in-store catalogue, allowing customers to place online orders in store.
“It’s really picking up more of the spend of our existing customers,” said Ms Spindler.
She added the business is not seeing any regional variations in trading.
“North, South, East or West, affluent or less affluent, these are not the factors that really correlate with success for us,” she said.
“It’s very much about picking the right town.”
TOFS reported underlying earnings of £10.4m on turnover of £177m in the year to the end of March 2012. Like-for-like sales grew 1.5 per cent and total sales were up 11.7 per cent.
Ms Spindler denied TOFS is being touted for sale by Duke Street.
“We are private equity-backed and therefore at some point the business will be up for sale. We are not at the moment and we have no immediate plans to review that.”
March of the smaller players
Discounters appear to be seizing market share from the Big Four supermarkets, reflecting an increasingly polarised grocery market.
Latest figures from retail consultancy Kantar Worldpanel show German discounters Lidl and Aldi both booked double digit increases in sales in the 12 weeks to June 10, versus a year earlier.
Aldi and Lidl both reported market shares of 2.8 per cent. Aldi’s was up from 2.3 per cent a year earlier, thanks to a 24.7 per cent increase in sales. Lidl’s market share grew from 2.6 per cent a year earlier, with an 11.1 per cent increase in sales.
Market leader Tesco saw its market share fall to 31 per cent and Morrisons’ fell to 11.8 per cent from 12.2 per cent in 2011.
Source: www.yorkshirepost.co.uk
Sainsbury, Asda, Aldi, Lidl Gain in UK Amid Consumer Cutbacks - NASDAQ
By Tapan Panchal
LONDON--J Sainsbury PLC (SBRY.LN), Asda and discount retailers Aldi and Lidl were the winners in the battle for U.K. market share during the 12 weeks ended July 8, amid a tight squeeze on consumer spending and a challenging trading environment, according to figures issued by Kantar Worldpanel on Tuesday.
In contrast, the market share of former retail-sector darling Tesco PLC (TSCO.LN) and Wm Morrison Supermarkets PLC (MRW.LN) fell. In the 12 weeks ended July 8, Tesco's market share dropped to 30.7% from 31.1% a year earlier, while Morrison's fell to 11.9% from 12.1%.
Sainsbury's market share rose to 16.5% from 16.4%. Asda, a unit of Wal-Mart Stores Inc. (WMT), posted a U.K. market share of 17.3%, up from 16.8%. Including Netto, Asda's total market share was unchanged at 17.3%.
Upmarket retailer Waitrose's market share also rose, to 4.5% from 4.4%, while discount retailers Aldi and Lidl's joint market share rose to 5.8% from 5.0%. Aldi's market share rose to 2.9% from 2.4%, while Lidl's rose to 2.9% from 2.6%.
"We are seeing big cutbacks by consumers as they continue to respond to this current period of austerity. The success of the discounters Aldi and Lidl, is a clear example of shoppers watching their purses, with both retailers continuing to surge ahead," said Edward Garner, director at Kantar Worldpanel.
Earlier this year, Tesco issued its first profit warning in 20 years, citing the most difficult conditions for retailers in living memory. The retailer has since begun a round of price cuts and announced a GBP1 billion revamp of its U.K. stores.
Write to Tapan Panchal at tapan.panchal@dowjones.com
(END) Dow Jones Newswires 07-17-120703ET Copyright (c) 2012 Dow Jones & Company, Inc.
Source: www.nasdaq.com
Asda announces milk pay increase for farmers - Shropshire Star
Supermarket giant Asda has announced that it is to increase the amount it pays to the farmers who produce its milk by 2p a litre.
From August 1 its 272 Dairylink farmers will continue to be paid 27.5p per litre for the milk they produce for us, offsetting a cut previously announced by milk processing company Arla.
The company said the additional money was worth around £30,000 a year and meant the price the farmers are paid will not reduce on August 1 as previously feared.
Karl Martin, commercial director for dairy, said: “We have listened to the concerns of our dedicated dairy farmers and recognise the financial pressures they are under. As a result, from 1st August we will increase the premium we pay from 1p per litre to 3p per litre.”
Source: www.shropshirestar.com
Wembley-bound - SkySports
A day after Leeds upset holders Wigan Warriors at Huddersfield's Galpharm Stadium Tony Smith's men clinched their spot in the final with a 3-6 win over the Giants.
The 24-year-old has played a pivotal role in the Wolves' march to their third Wembley appearance in four years and he will be one of the first names on coach Smith's team sheet for the August 25th contest.
Hill normally takes full advantage of a weekend off during the Challenge Cup final, although this year he is expecting to be giving his all for his team.
First time
"I've never even been down to Wembley, not even to watch," Hill revealed.
"At Leigh the fourth round was the furthest we got. We always drew a Super League side so it was always a struggle.
"I usually get away for the weekend but this time there will be no weekend away."
Hill, whose biggest match up to this year was the Northern Rail Cup final against Halifax last July, says he has to constantly pinch himself after making the seamless step up from the part-time Championship to Super League.
He sat out Warrington's opening two fixtures but has appeared in all 22 since and is currently keeping stalwarts Adrian Morley and Paul Wood out of the starting line-up.
Expectations
"It's been a real high for me," he continued. "It's probably exceeded my expectations for this year.
"To come into a team like this and in my first year get to Wembley, it is unreal.
"I have to thank Tony for believing in me. He kept the faith in me throughout the year.
"I have never been in situations like this. I know I was in the Northern Rail Cup final but this is a different level.
"I'm absolutely loving it. It's a privilege to be playing with some of the players that are here and it gives you that confidence.
"People like Monners (Michael Monaghan) and Mickey Higham are really good talkers they are helping my game a lot.
"They have been there and done it. You get a calmness from having them around, especially before big games."
Source: www1.skysports.com
Hilton London Wembley opens today in time for Olympics - caterersearch.com
The 361-bedroom Hilton London Wembley opens its doors today in time for the eight football matches being held at the nearby stadium during the London 2012 Olympics.
Situated adjacent to Wembley Stadium and Wembley Arena, the hotel is well placed for the host of sporting events and concerts which attracts four million people every year.
General manager Jack Nicholas, who is seen here with the hotel's newly appointed senior management team, said that the hotel will be a key player in attracting back the much needed conference and events market to the area.
"With ample facilities to host events and meetings on any scale, Wembley is an attractive destination for business travellers, which is a hub for sport, comedy and music," he said.
The hotel offers a 660-seat ballroom, 10 meeting rooms, a business centre, LivingWell Health Club with a 12m pool, sauna and steam room and 24-hour gym. Its restaurant, the 280-seat the Association, will feature a modern British menu, while the Sky Bar 9, located on the ninth floor of the hotel with an outdoor roof terrace, enjoys views over Wembley Arena and Wembley Way.
Rooms, with rates from £155, are currently still available at the Hilton London Wembley for the Olympic football matches.
Hilton to open new hotel at Wembley this month >>
Hilton to play host to England stars at National Football Centre >>
By Janet Harmer
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