Luxury store Fenwick hails success of posh Greggs bistro - but made loss of nearly £40m

The comments come as the North East department store chain publishes financial results which show tough times for the retail sector

North East department store chain Fenwick is on the hunt for more “exciting and engaging” food and drink partnerships after hailing the success of its Greggs silver service restaurant.

The historic retailer, which trades from eight UK stores including its flagship shop on Newcastle’s Northumberland Street, last year welcomed thousands into its Greggs X Fenwick Bistro, where festive bakes and sausage rolls were delivered to diners beneath silver cloches. Now the firm has revealed in its accounts for the year ended January 2024 that it is further developing its food and drink offerings – a move which has recently seen the opening of a Barbour Tea and Toasties cafe, a new Mother Mercy cocktail bar and a classic tearoom called Fred’s on the lower ground floor.

The company said it is continuing to develop its Fenwick at Home range, its food own-label products, and also continuing to invest in its own-label restaurant offers, which include Fuego and Mason & Rye, and that it continues “to explore exciting and engaging food and beverage offerings, such as the noteworthy Greggs silver service partnership in Newcastle before Christmas”. Fenwick – which recently opened the largest UK beauty hall outside of the capital in Newcastle – narrowed its losses but said that tough trading conditions continue within the retail sector. In its Fenwick Ltd accounts, covering the year ended January 2024, the loss for the financial year was £39.5m, down from £70.4m the previous year.

A report within the Fenwick Ltd accounts said: “The market environment continued to provide a challenging backdrop to sales. The effects of the war in Ukraine continued to be felt and to impact upon supply chain and costs. Mortgage rates continued to be high, as did inflation, contributing further to the ongoing effects of the cost-of-living crisis. In the last quarter sales were further impacted by heavy discounting by competitors. This has impacted the company’s ability to limit discounting and contain costs relative to sales.”

Fenwick’s cash balance increased by £133m to £177.3m, supported by the disposal of the London store – giving it funds to invest in its city centre locations, including the Newcastle flagship store, and in its supply chain to support its online presence.

It added: “We will continue to differentiate ourselves from the competition by our investments in service and hospitality, in both the physical and digital estate and in our people and products. Our masterplan for Newcastle continues and will complete in the coming months. The company will continue selectively to invest in its stores, where clear results can be seen which will improve Fenwick’s presence in key locations.”

Fenwick is currently searching for a new CEO after it was announced that the executive appointed to the role would no longer be taking up the post. Former Harrods executive Nigel Blow has said the company had stopped him taking up the role.