Sunday 4th May

Posted by Christie-

My secondary research on Liberty Sales and the consumer..

LIBERTY SALES- WGSN
Liberty sales jump 7% as TV documentary boosts footfall

By WGSN Newsteam, 28 February 2014

Heritage fabric wholesale business strong
Upscale London department store Liberty posted a 7% year-on-year rise in 12-month sales on strong demand for its heritage textiles, own label clothing and tie-ups with brands such as Nike and Barbour.

The store, which has been the subject of a prime-time television documentary series, noted footfall had risen 5% year-on-year to 4.5m as same-store sales jumped 11.2% in the 52 weeks to February 1.

Total sales grew to £124m and ebitda is expected to reach over £17.5m for the period.

Christmas trading in the flagship store saw double digit growth, with online Christmas trading (December 1-28) up 86% on-year.

All categories in the flagship store saw “significant” growth rates with stand outs in fragrance and fine jewellery from brands including Frederic Malle, Byredo, Pomellato, Carolina Bucci and Annina Vogel. Premium brands such as The Row, Givenchy, Victoria Beckham, Valentino, Stella McCartney and Alexander McQueen delivered strong results in the accessories and fashion categories, it noted.

The fourth floor home department also saw “significant performances” from established furniture designers including Tom Dixon, Pinch and Zoe Murphy as well as continued interest in the Liberty Arts + Crafts antique furniture department.

Liberty noted that early half a million people are now part of the its loyalty card scheme “and represent a significant portion” of in store and online sales.

Liberty online also continued to see success with both the Liberty x Nike collections of the 2013 selling out within 48 hours of going live on the site, it said 

Meanwhile, the continued global expansion of the ‘Liberty Art Fabrics’ business saw “significant” growth in new markets – the Far East Pacific, South America and the Middle East.

Liberty also said since London based private equity firm BlueGem acquired the firm in 2010, total “sales have consistently increased by a compound annual growth rate of around 16%, starting from £69.3m in 2009”.

LIBERTY SALES FIGURES
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THE LIBERTY CONSUMER- MINTEL
Mintel * Liberty's accessories brand Liberty of London has reported wholesale sales of £3.5 million for 2008, with sales up £2.2 million for the autumn/winter 2008 season.
Creative director Tamara Salman said that the results indicated that Liberty of London, although still loss-making, was withstanding the effects of the credit crunch.
Salan said that the brand's future was "separate" from that of the parent company, which lost £6.4 million in the year to 31 December 2007, primarily due to the costs involved in rolling out Liberty of London. Liberty has invested £3.6 million in Liberty of London for the year to 31 December 2008.
A new store in Sloane Street will open in July 2008 and is to serve as a blueprint for more standalone stores and shop-in-shops in department stores.
* Liberty, the upmarket department store, has reported a 40% year-on-year sales rise to £26 million in the four months to April 2010.
The company said that it was aided by strong performances at its fabrics division, its flagship London store and its online division. Its owner MWB added that talks over selling Liberty for £32 million to private equity house BlueGem Capital Partners are ongoing.
Liberty also completed the sale of its iconic Great Marlborough Street premises for £41.5 million.

* “In order to stand out in a competitive market, it is essential for department stores to ensure that they improve their stores, with a quarter of consumers saying a modern looking store would encourage them to shop there more.”
Mintel’s research reveals that department stores have domination over the luxury goods market, with four in ten luxury goods shoppers heading to these destinations for their premium purchases. Their clientele is skewed towards under-35s, ABs and parents of young children.




Key analysis: Department stores should focus on driving self-purchases within their luxury sector, by emphasising how busy mothers, for example, deserve to indulge themselves occasionally with high-end items as a special treat.

People who live in the capital are significantly more likely than people from elsewhere in the UK to buy premium goods from department stores. This is directly linked to the fact that these retailers are a London speciality, with Harrods, Harvey Nichols, Selfridges and Liberty – all with a strong focus on high-end luxury – located across the city.

Department store shoppers are most likely to see luxury purchases as indulgent treats, suggesting that they may quite often be bought on impulse.