BHS chief to look for new executive

Sir Philip Green is planning to recruit a high profile chief executive to turn around Bhs, after calling off tentative talks to sell the department store chain to Allan Leighton, the Royal Mail chairman. Leighton and Green held informal discussions about a possible deal, which broke off in recent days. Green told the Sunday Telegraph that the discussions with Leighton had been nothing more than “ a little flirtation”.

It is understood that there are no plans to resurrect the talks. But Green also revealed that he will begin a search for a new, full-time chief executive for Bhs once he returns from his summer holidays. Rather than discuss any possible deals, Green said that he wants to “crack on with the business”.

www.bhs.co.uk
16 July 2007

Bhs sees profits plummet

Profits at Bhs have dropped by more than 50% last year as shoppers failed to be enticed by the store's fashion offer. Sir Philip Green said the chain had been through a difficult period and described its full year profit of £48.5m, down from £105m twelve months earlier, as "obviously disappointing". Like-for-like sales tumbled 7% as shoppers went elsewhere and gross margins were down 1.4 percentage points as Bhs was forced to slash prices to shift slow-moving stock.

The figures, which cover the year to April, emerged as Bhs filed its annual accounts at Companies House. The colourful entrepreneur said: "I stated at the end of last year that profits would be significantly down due to internal ranging mistakes, particularly in womenswear." However, he said buyers had been changed, ranges improved and trade had picked up. While the market was still challenging, the decline in like-for-like sales had been halted over the last seven weeks and margins had improved. He pointed out that margins were still up by more than 11 percentage points since he acquired Bhs six years ago.

Nevertheless, the results are in sharp contrast to those achieved recently by Marks & Spencer, which the Bhs boss tried and failed to buy two years ago. When Sir Philip ended one of the most acrimonious takeover battles in UK corporate history, he insisted he would strive to make life difficult for Marks & Spencer and Stuart Rose, its chief executive and Sir Philip's arch-rival. He held out the prospect of a price war and said his stores would "trade their socks off" to cause problems for M&S. Sir Philip also owns the Arcadia group of fashion chains, including Topshop, Burton and Miss Selfridge.

In the event, M&S has recovered rapidly, while others such as Bhs and Next have found the going very tough. In July M&S unveiled like-for-like first quarter sales up 8.2%, with general merchandise sales, which include clothing and homeware, ahead by a market-beating 10.5%. It was the fourth consecutive quarter of growth for the company, which is spending £45m a year on its advertising campaign. M&S shares are changing hands at 642.5p, compared with the 400p Sir Philip proposed in his takeover attempt, valuing the business at some £11bn.

Last year the retail tycoon awarded himself a £1.2bn dividend from his Arcadia group. However, for the second year running Mr Green, who bought Bhs for just £200m, did not pay himself a dividend from Bhs. He said he had been investing "in the future growth" of the Bhs brand, having spent £13m on 10 new stores and£44m acquiring three freeholds. As a result, the company said net debt had risen to £142m from £121.6m in the previous year.

Sir Philip said two store openings were planned in the next two months, including a new outlet for his British Home Stores format in Reading. The new format, overseen by Sir Philip's wife, Tina, focuses on homewares and three more will be opened next year. A revamped Bhs store is also being tested in London's Oxford Street which if successful will be rolled out across the country.

www.bhs.co.uk
29 September 2006

BHS not ready for chip & pin

At least two major retail chains will not be ready for the switch over to chip and pin by the February 14th Deadline. BHS and B&Q will not have working chip and pin systems in place and shoppers will still have to sign receipts to verify card purchases.

Barclaycard said liability for any fraud would lie with the weakest link in the chain - the stores that have not installed the systems. Crooks armed with stolen cards will need Pins in most stores so will only be able to forge signatures in the stores that have not switched.

Green predicts Bhs profit drop

Operating profit at British department store Bhs is expected to drop at least 30 percent this year due to difficult trading conditions, says billionaire owner Philip Green. Underlying sales at the chain have dropped 7 to 8 percent since September, compared with a 5.5 percent decline in the six months before. As a result, operating profit will drop to between £75 and £85 million, compared with £105 million last year.
According to Green, Bhs is doing poorly because it does not offer the right products. "Sales are down, product is off the boil and I am happy to fix it," Green said on Tuesday. "Basically, the product is poor and when you get the product wrong, you get punished. I have not been engaging with Bhs. I have been distracted when the market is a lot more tough. I am happy to take ownership of it."

Green said that in the past four weeks he has changed key staff, has added buying directors for women's wear, children's wear and lingerie, and would increase investment in the stores. He plans to invest £100 million in Bhs, £70 million more than last year, and has bought seven Allders stores which he will convert into Bhs Home stores.

www.bhs.co.uk
16 November 2005

Bhs reports drop in profit

High street chain Bhs, owned by retail mogul Philip Green, has reported a drop in profits. The company said that while net sales remained static at £889.2 million for the year ended 2 April, same-store sales had fallen 3 percent. Operating profit for the year dropped 5.8 percent to £105.1 million.

The company also announced that the former marketing director of Selfridges had been appointed to the same position at Bhs. Green said the disappointing results were due to difficult market conditions and added that the company would continue its strategy of opening new stores and refurbishing existing ones.

www.bhs.co.uk
13 October 2005

Philip Green top high street influence

Philip Green has won the Drapers Record award for the most influential people in high street fashion 2004.This year, the owner of BHS and Arcadia saw profits rise by 30 per cent and he launched a £9 billion bid for Marks & Spencer.

8 December 2004

New Fashion Guru

Billionaire boss of BHS and TopShop, Philip Green, is donating £5 million to found UK's first fashion and retail academy. After failing to buy Marks & Spencer earlier this year, he is placing his money in a venture that ought to benefit not only the UK, but also himself.

The academy is geared towards 16-19 year olds who do not wish to attend university for a career in fashion retail, but who will be trained in marketing, finance and fashion buying. Green is in negotiations with the Department for Education and Skills to secure further funding for this venture. The academy is set to open in September 2005.

www.fibre2fashion.com
29 September 2004

BHS To Focus On Fashion

Stephanie Chen, the new womenswear buyer at BHS, plans to roll out a more fashionable range of clothing. "We have been less confident in fashion. We have had fashionable items, but only in our top stores," said Chen.

The former Debenhams designer will work alongside Steve Lawton, a new buyer for menswear. But the BHS newcomers will face increasing competition from the team at Marks & Spencer, to be bolstered in three weeks by the arrival of Kate Bostock as director of womenswear.

14 September 2004