Theo Paphitis Says His Retail Chains See ‘Significant Growth’ Online

Theo Paphitis said his lingerie brand Boux Avenue has seen a massive lift in online sales and aims to establish an overseas presence.

The brand, which now has 21 UK stores and four overseas, increased online sales by 182 per cent in the year to March 2013. Stores like-for-like sales up 40.8 per cent.

Total sales at Boux increased to £18.2 million from £6.9 million in 2012. Paphitis wants to balance the brand, which he launched in April 2011, more evenly between online and stores than traditional retail business.

Boux made an operating loss of £7.1 million after heavy investment in growth including ‘state of the art stores, marketing, website, infrastructure, systems, people and internationally’.

'The focus for 2014 will include the continued expansion of Boux Avenue, especially overseas which is already underway through out recent franchise agreement to open 29 stores in the Middle East over the next five years,' said Paphitis.

He said he has signed terms for an additional 31 stores across two other as-yet-unnamed territories. He said like-for-like sales at Boux increased 20.2 per cent in the festive period - measured from November 1 to December 24 compared to the same period last year.

Online sales at his Ryman stationery business rose 24.7 per cent in the year to March with like-for-like sales ahead 0.9 per cent, turnover up 0.8 per cent to £125.4 million and an operating profit ahead marginally at £7.1 million versus £7.0 million.

Festive trading at Ryman, owned by Paphitis since 1995, increased 1.7 per cent.

Robert Dyas, acquired in July 2012, three months into the financial year, grew ‘strongly’ online and in stores in the 12 months to March with total like-for-like sales ahead 11.2 per cent.

Operating profit at Robert Dyas increased more than threefold from £1.1 million to £4.89 million. Festive trading rose 5.2 per cent.

Paphitis said he was 'delighted' with the Christmas performances.

'All three businesses saw significant increased online setting record internet sales weeks at various times in the [festive] period. The response from our customers to our proposition, both online and in store meant we were able to deliver increased sales and improve margins at the same time by avoiding the need for discounts seen elsewhere in a challenging market,' he said.

'While the companies are obviously at different stages of development under my ownership I am pleased to see them all make good ground online, on the high street and in shopping centres.'

He added: 'Robert Dyas will build on 2013’s successful multichannel catalogue campaign whilst Ryman will continue to enhance its own multichannel capabilities and expand upon business to business opportunities.'