2024

INTEGRATED REPORT

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OFFICE

Retail
presence

Office is an omni-channel retailer with a portfolio of stores and concession outlets in the UK (79 stores) and in the Republic of Ireland (seven stores). The physical store network is complemented by a well-established, world-class online business which contributed 46% of the segment’s retail sales in the reporting period.

STORE AND ONLINE SALES AS A PERCENTAGE OF RETAIL SALES (%)

RATIONALISATION OF STORE PORTFOLIO

Office continued to reinvest in modernising and selectively expanding and upgrading its store estate with the opening of eight new locations in the reporting period. A new flagship Offspring stand-alone store opened in King’s Cross, London.

Flagship stores in Oxford Street (London), Stratford and Dublin were modernised, with the new and remodelled stores all trading well ahead of expectations.

After consolidating the physical store base in recent years and closing underperforming and poorly located stores, only three stores were closed in the period. Trading space increased by 11.4% relative to a reduction of 12.6% in the prior period and £6.5 million (2023: £2.6 million) was invested in store development.

The new store design introduced in 2023 was applied to all new and modernised stores. In remodelling and upgrading existing stores, Office aims to increase trading space by regaining space typically used for larger-than-required stock rooms and converting this into productive space.

Office continued to secure rental tenure in most strategic locations, with lease renewals generally concluded for five years or for 10 years with a break clause after year five.

Accessibility of the Office brand is a key attraction for customers and brand partners, with its blend of online and stores in key locations and markets resulting in the current retail sales mix of 54% in-store and 46% online. In the reporting period, in-store sales increased by 8.4% and e-commerce sales by 13.8%.

CONCESSION OUTLETS

Trading through concession outlets allows Office and Offspring to access customer footfall within leading department stores, both physically and online, while simultaneously offering a more flexible physical footprint and cost base. At the end of the period, Offspring had 10 concession outlets (eight in Selfridges and two in Brown Thomas) and Office had one (Selfridges).

ONLINE AND E-COMMERCE

Office continued to invest in its e-commerce capability to enhance the digital user experience. The implementation of a leading-edge customer relationship management (CRM) application contributed to a significant enhancement in personalised communication and targeted segmentation, and ultimately improved customer retention.

Chatbot was introduced as the first line of customer contact for digital platforms, with the initial phase including basic questions. The next phase will be developed in the new financial period and the chatbot will be integrated with the digital carrier.

The branded footwear market is highly influenced by social media. Office and Offspring continued to grow their e-commerce capability with strong support on social media, with over 1.3 million followers across Instagram, TikTok, Pinterest and Facebook.

RETAIL PRESENCE IN 2025

In the new financial period, Office plans to continue its strategy of maximising the store portfolio by securing rental tenure in the best locations at market-related occupancy costs and where internal investment criteria are satisfied.

Capital expenditure of £7.3 million has been committed for store development, with trading space planned to increase by approximately 11%. This includes the opening of four new stores, relocation of three stores, remodelling of 12 existing stores and one store closure.

E-commerce developments will include the upgrading of Office’s existing mobile app to enable personalised communications with targeted customers, the development of a new Offspring app and enhancements to marketing communications to increase sales at targeted return on advertising spent.

2024

INTEGRATED REPORT