Luxury department store chain Fenwick has narrowed its losses for a third consecutive year, reporting a 40% drop in operating losses in the first year of its three-year transformation strategy. The company, the UK's largest family-owned group of department stores, has hailed the improvement as a significant milestone in a challenging retail environment.
Financial performance improves
Accounts for the year ended January 2026 show turnover increased from £177m to £179.2m, while the operating loss reduced by £15.7m to £23.4m. The overall loss for the year was cut from £60.3m to £38.8m. The company has continued to invest heavily in its stores, supported by proceeds from the sale of its Bond Street store, which was sold for £430m four years ago.
Fenwick operates eight regional department stores, including its flagship in Newcastle's Northumberland Street, known for its annual Christmas window, as well as stores in Kingston, Brent Cross, Colchester, Canterbury, Tunbridge Wells, Bracknell, and York, alongside a growing online business.
Strategy and partnerships
In September, the new executive team implemented a three-year strategy focused on "sales and margin growth, whilst driving cost efficiencies across our retail estate." Directors highlighted successful partnerships with North East organisations, including Greggs, Newcastle United, and Barbour.
They said: "In line with our broader strategy to focus on customer retention and acquisition, we continue to develop and see success from multiple brand partnerships. This includes the partnership with Newcastle United Football Club as Premium Retail Partner, which has seen particular success with the launch of the club retail shop in the Newcastle store, and the Rooftop hospitality space at St James's Park. Other successes have been the second partnership with Greggs who created a champagne bar in the Food Hall, and Barbour who launched their first Barbour Café in the store."
Investment and outlook
The company reported strong like-for-like gross sales growth of 2.5%, driven by momentum across its stores and online business. It continues to operate with a debt-free balance sheet and cash reserves of £63.4m. During the year, Fenwick migrated to the Shopify platform and launched the MyFenwick Loyalty programme in September 2025, which now has more than 350,000 members. Further investment is planned for the Kingston and Brent Cross stores in the coming year.
Sian Westerman, chair of Fenwick, said: "These results demonstrate that our strategy is delivering. Achieving a 40% reduction in operating loss in what remains a challenging retail environment is a significant milestone. Fenwick is now in a stronger position than it has been for many years, and I am confident our three-year strategy will return the business to sustainable profitability."
Mia Fenwick, executive deputy chair, added: "The first year of our three-year plan has delivered strong progress and demonstrates that our strategy is gaining real momentum. We have built stronger foundations for the business, invested in the customer experience and continued to evolve Fenwick as a truly omnichannel retailer. The introduction of MyFenwick Loyalty has been embraced by our customers, while the integration of our stores and digital channels is creating a more seamless and personalised experience across every touchpoint. These investments are helping us build stronger customer relationships and position the business for sustainable long-term growth. While there is more to do, we are encouraged by the progress we have made. As we continue to invest in our stores, including further improvements at Kingston and Brent Cross, I am confident that Fenwick is well placed to build on this momentum and deliver the next phase of our transformation. None of this progress would have been possible without the commitment and dedication of our colleagues across the business, whose passion for serving our customers continues to underpin everything we do."
