ScS pulls House of Fraser concessions
ScS is to exit its 27 concession in House of Fraser stores after sales slumped by more than half.
The group said sales at the furniture and flooring concessions had dropped by 52.5% in the quarter to 20 October, and had made up just 2.7% of group sales.
House of Fraser has seen a number of concession holders quit since its administration and purchase by Sports Direct.
The concessions will close by the end of January and the group said it would try to find positions for the effected staff.
‘I would like to take this opportunity to thank all of our colleagues who have worked in our House of Fraser concessions over the past few years for their dedication and hard work. However, given developments in House of Fraser over the last few months, it has become clear that the partnership was no longer beneficial to ScS,’ said David Knight, ScS ceo.
He said like for like orders at ScS branches during the period had risen by 4.5%.
‘We are pleased that we have continued to trade well in the core ScS business in the first 12 weeks of our financial year. We will continue to focus on our successful value offering proposition, coupling this with the excellent service that ScS provides and that our customers know and love.’
When House of Fraser revealed its CVA plans before its administration, the majority of the stores earmarked for closure had ScS concessions.
ScS launched the concessions in 2014.
‘Our concessions within House of Fraser, which represented 7.1% of sales, has had a particularly challenging year. The ongoing uncertainty throughout the year as to the viability of the House of Fraser business culminated in the business going into administration shortly after our year end. The business and assets were subsequently bought by Sports Direct and, whilst we continue to trade from all 27 concessions, order performance has continued to be disappointing. We are currently in discussions with the new owners with a view to agreeing a mutually beneficial arrangement, which will allow us to continue trading in a profitable manner in as many of the current concessions as possible,’ Alan Smith, ScS chairman told shareholders in the company’s annual report yesterday.