High Street gets a lift from upbeat Liberty
Liberty, the iconic Regent Street store, is defying the carnage in the retail sector and offering hope that the High Street could enjoy a better start to the new year than expected.
The shop said today that sales in the first 10 months of 2008 were actually better than they had been a year earlier, suggesting that its long-awaited turnaround is underway — and that stores which meet customer demand can prosper despite the downturn.
In the first sign of optimism in the retail sector for months, Liberty said December sales were much better than expected. A statement from the AIM-listed company behind the giant store, said: "Although November's trading reflected the general retailing slow down, sales in December exceeded expectations and almost matched last year's record Christmas."
The store is gearing up for a major refurb this month which will see two-thirds of the building redesigned.
Liberty, founded by Arthur Lasenby Liberty in 1875, went through a rocky period in the 1990s.
In 2000, chairman Richard Balfour-Lynn caused a stir by complaining that too many "vicars' daughters from the shires" shopped there, saying he needed a more upmarket, designer-focussed crowd.
In May 2007, he hired Frenchman Geoffroy de la Bourdonnaye — previously of L'Oreal and LVMH — to be the chief executive that would attract more upmarket shoppers.
The move to turn Liberty into a Burberry-style outfit saw the launch last year of a Liberty of London luxury brand store in Sloane Street — the heart of the so-called banker "bonus belt".
The company, 68% owned by hotel and property outfit MWB, said sales at this store have been "slower than anticipated while it secures market share and establishes the brand in the current more difficult retail environment". But the fact the group has avoided a profit warning will please investors and rival retailers looking for signs that an upturn may not be far away.
MWB's other arms — the serviced office business and the 22-strong hotel chain that owns the Malmaison and Hotel du Vin brands — also said sales have been "firm" over the last 12 months. Profit figures will be released in March.
