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HomeNEWSGlassons rolls out new look stores as profits jump

Glassons rolls out new look stores as profits jump

Glassons Albany has a new look store that splits the shop into aisles rather than its traditional wide open space. Glassons CEO Graeme Popplewell says the updated layout makes stores easier to navigate and more intelligent in the way they showcase product. Plus – we take a look at Hallenstein Glasson’s latest financial results.

Instead of being an open space where a shopper can see anywhere in the store, Glassons Albany now boasts aisles of clothing through the centre separating different sections.

Popplewell says the new retail direction is one part of the brand’s overall strategy to continue to develop value in both its product and its retail environment.

“Making stores easier to navigate, more intelligent in the way they showcase product and more interesting to be in is inherently more exciting for our customers, and this has been proven in Bondi and Macquarie, Sydney and Garden City at Brisbane,” Popplewell says.

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The new concept has been very successful and we are confident our New Zealand customers will be blown away by our new stores.”

A spokesperson says Albany has traded well above expectations since its opening in August.

There are plans to open more of these new format stores, starting with Northwest Shopping Centre tomorrow and St Lukes in the near future.

Hallensteins has also been refurbishing its stores and will open a new store at Northwest mall.

Meanwhile, Hallenstein Glasson’s profits rose to $17.4 million in the 12 months ended August 1.

This was an increase of 21.8 percent from $14.3 million a year earlier. Sales increased 6.5 percent to $221.5 million.

Popplewell said in a statement that solid growth had been made in the last year.

“In particular, losses in Australia had been turned around and steady progress was being made in that market. Glassons in New Zealand however has been disappointing by comparison,” he said.

Hallensteins reported a 19 percent increase in profit to $9.6 million, while sales increased 6.8 percent to $85.6 million.

Glassons New Zealand reported a 17 percent drop in profit to $6 million, while sales rose 2.5 percent to $85.7 million.

This loss was attributed to changes in the executive staff during the year disrupting the momentum, but the retailer said new management is working towards recovering lost ground.

It was also a tough year for Hallenstein Glasson, as it faced increasing competition from online stores and international retailers like Topshop and now H&M arriving on New Zealand’s shores.

Ecommerce sales accounted for 5.4 percent of the total group sales and increased 8.7 percent during the year.

Group sales for the first eight weeks of the 2015/2016 financial season are up 4 percent on the prior year.

However, the company said intense competition has meant sales have been achieved at the expense of cutting prices and eroding its margins to get customers back to its bricks and mortar stores.

Looking ahead, it said investment in its stores is critical to provide a unique and exciting shopping environment for customers.

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