Peacocks acquires The Fragrance Shop UK perfume chain
acquired by Welsh company Peacock Group, owner of Peacock and
bonmarché clothes stores.
Cardiff-based Peacock Group has bought out The Fragrance Shop's majority shareholder and senior management in a transaction worth around GB£15 million (€22.5 m).
Peacock, which operates more than 700 stores across the UK, recently reported pre-tax profits for last year of more than GB£32 million (€48.5 m), up nearly 60 per cent.
But the company is facing increasingly tough competition from supermarket chains' clothing lines and is diversifying into the perfume market, which is stated is worth more than GB£700 million (€1 bn) per year.
The Fragrance Shop was established in Liverpool in 1995 and sells brand-name fragrances, including Chanel, Calvin Klein, YSL, Christian Dior, Gucci and Armani, at discount prices. Its operating profits for last year were GB£610,000 (€900,000), more than double the previous year.
In a statement, Peacocks' group chief executive Richard Kirk said: "The Fragrance Shop is a high quality business with excellent relationships with many of the key fragrance houses. This strategic acquisition sits well alongside our other formats and provides an attractive development opportunity for the Group."
The chain currently consists of 29 stores and Peacocks plans to open at least 20 new outlets each year, increasing the number to 150.
