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Edinburgh Woollen Mill targets 100 new stores

Fashions from the Edinburgh Woollen Mill.
Fashions from the Edinburgh Woollen Mill.

Rapidly expanding Edinburgh Woollen Mill announced plans to create more than 1,100 new jobs as part of a major growth strategy.

The retailer unveiled plans to open 100 new stores over the next 18 months and said it would continue to support the rehabilitation of fashion chain Peacocks, which it bought out of administration.

Around 100 of the new posts will be within the Peacocks division, with a new outlet being added to the chain’s 440-store portfolio every week throughout the first two months of next year.

The expansion plans came as EWM, which also owns Ponden Home and has a total workforce of 12,000 at around 1,000 shops, posted a trebling of pre-tax profits for the year to March to £56.7 million, on sales of £566.7m.

Like-for-like sales for the whole group’s underlying business increased by 1.2% over the year, while online sales were up by 57.5% on the year previous.

The privately owned group opened 56 new stores during the period, creating 920 jobs in the process and expects to add a further 30 in the first half of 2014.

Commercial director Steve Simpson said there were opportunities for retailers both at home and abroad despite the economic conditions remaining challenging.

“UK retail remains a tough environment and we are focused on serving customers who are seeking value at a time of reduced discretionary spend but who will not compromise on quality,” Mr Simpson said.

“The group is free of debt so we can leverage a positive balance sheet and focus on a sensible strategy which continues to deliver sustainable growth for the long term. The natural next step for us is to take this approach to robust international markets such Germany, the Middle East and Russia.”

EWM has poured more than £80m into Peacocks, which had previously been owned by hedge funds Och-Ziff and Perry Capital and which collapsed under the weight of £240m of debts, since taking it over in March of last year.

The Peacocks brand has since been refocussed and efforts made to increase revenues through its online presence.