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In an age of rescues, mergers and seeking safety amid a maelstrom of economic bad news, it seems that size matters. The bigger the bank, the better its chances, for example - and if N Brown is any guide, the bigger the customer, the better the bottom line.
As the misery on Wall Street engulfs the high street, the home-shopping group has announced a 12.6 per cent increase in sales to £322.8 million in the 28 weeks to August 30. Pretax profits in the 26 weeks to August 30 rose to £40.8 million, from £34.1 million, a 20 per cent increase.
All this because larger ladies and gents have become keener followers of fashion. The average spending of customers was up 7 per cent on last year as consumers latched on to designer brands that previously had not been available to them.
“We’ve been introducing some more branded ranges, put together by some well-known designers, which means we have actually seen some consumers trading up,” Alan White, the chief executive, said. Moreover, N Brown says that the age of its clients means that they are better placed to weather a recession. “The market we’re serving has an average age of 57 and they also tend to be larger than average,” Mr White said. “We’re focusing on a customer base that’s less affected by the mortgage market.”
Half of N Brown’s female customers are a size 20 and above, while 20 per cent of its male customers have a waist of more than 48in. “They can’t just go into the high street and pick something up,” Mr White said.
However, he struck a note of caution by toughening the group’s credit criteria. Customers will have to shop with the group for longer before they are given extended credit.
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