Bhs overhaul working – Green
Oct 4 2007 by Iain Laing, The Journal
BHS is beginning to reap the benefits from a revamp of the chain’s stores, according to its billionaire boss Sir Philip Green.
Sir Philip said Bhs has seen “very encouraging” results from the overhaul of 13 stores so far, with sales 12% ahead of the rest of the 100-strong chain.
But the retail tycoon denied himself a Bhs dividend payout for the third year in a row. Sir Philip paid himself a £1.2bn dividend from his Topshop-to-Burton Arcadia clothing empire in 2005.
Sir Philip said a further six stores would be completed by October, although plans to accelerate the refurbishment programme in the New Year depend on trading in the final quarter.
Bhs operating profits in the year to March 31 were up 3% to £50m, on sales 1.4% ahead at £872.5m, which the retailer said was “a good platform.”
As well as store revamps, the chain has also made efforts to improve its clothing ranges. Like-for-like sales declines slowed to 1.5%, compared with 7.1% the previous year.
Since March, Bhs said the market remained “competitive“, with flat like-for-like sales. But during the last six weeks the chain has reported a 3% improvement in sales growth over the previous year.
Sir Philip was ranked seventh in the Sunday Times Rich List with a £4.9bn fortune.
The former British Home Stores opened for the first time in Brixton, south London, in 1928. The highest price of any item sold was one shilling (5p).
It became a public company in 1931 but was in the doldrums when Sir Philip bought the group in 2000 from previous owner Storehouse.
