McEwens of Perth, Scotland’s last independent department store chain, has produced its first pre-tax profit in four years a significant turnaround in fortunes for the up-market retailer.
Just two years ago McEwens, established in 1868, was still posting six-figure losses and struggling to increase sales.
Now after closing stores in Aberdeen and Inverness, and refocusing on what chairman and managing director John Bullough described as “bringing the joy back into destination shopping” the company has turned a pre-tax loss of £15,400 into a profit of £80,600.
“This is a small step but a significant one for the group,” said Mr Bullough.
“We are operating in an incredibly challenging environment for high street retailing, but have produced a five-year strategy for our recovery which is starting to pay off.
“We identified customer experience as a priority for organic growth, and our aim is to make McEwens of Perth a destination shopping experience for people who enjoy beautiful food, excellent customer service and a great range of fashion and homeware.
“We want to bring the joy back into destination shopping as an alternative to the sterile offering of out-of-town retailing centres, and it is an approach that is working.
“We have got the group back into profit and we are forecasting a considerable increase in profitability next year.”
In refocusing, McEwens has moved away from in-store branded outlets to offer distinct ranges as a destination shopping attraction.
The firm has also expanded its food hall in partnership with farm shop Loch Leven’s Larder.
In a £1 million investment McEwens has also refurbished the Peacock Restaurant as well as footwear and children’s departments.
An online shopping site brings in more sales, and the company has more improvements in the pipeline.
Turnover of the parent company McEwens Direct Ltd for the year to February 1 2014 was up 10.9% at £6.589m. Gross margin was down 2% at 54% but operating profit was up 48% at £293,490 resulting in a pre-tax profit of £80,602.
McEwens was acquired by the Bullough family in 1982, and the flagship store in St John Street, Perth, is joined by smaller shops in Ballater and Oban.
There is a staff of about 130.