“We are investing in the shop floor. We absolutely believe in the retail experience and want to be the best.”
The House of Bruar has remained profitable despites its revenues being “severely diminished” as a result of Covid-19.
Managing director Patrick Birkbeck said the Perthshire country fashion retailer had weathered challenges presented by the pandemic.
The ‘Harrods of the North’ has remained open as much as restrictions have allowed while also benefitting from previous investments in its online operation.
Online sales rise
In the past year, digital sales accounted for 70% of turnover.
“Covid-19 has understandably meant that the retail performance in 2020/21 has been severely diminished and yet the company will produce a significant profit for the year that finishes on Sunday,” Mr Birkbeck said.
“The migration of customers from retail to an already healthy direct shopping business has allowed to company to continue trading and to be successful in the pandemic.”
The House of Bruar produces three million catalogues a year and saw exceptional demand for Christmas hampers.
No redundancies at House of Bruar
Mr Birkbeck said the statistic that gave him most pride was that staffing levels today are the same as 10 months ago.
He said: “The furlough scheme made a life changing difference. I don’t know what we’d have done without it. The rates relief was very welcome.
“In March 2020, the company employed 270 people. I’m very proud we continue to have 270 employees today.
“At no time of the year did we consider reducing that number although we didn’t take on as many seasonal staff in the summer.”
When workers were being laid off at Pitlochry Festival Theatre, House of Bruar employed six people who’d been made redundant.
Importing from EU a ‘nuisance’
Looking ahead, Mr Birkbeck said the business prospects for 2021 were uncertain.
He feels the potential lack of tourism from abroad, may be accentuated with the slow vaccinations in Europe.
He described receiving deliveries from the EU as a “nuisance”.
“They are getting held at the port until the clearing agent gets in touch with us,” he said.
“They’ve got to set up an account with us, we’ve got to pay the bill and then the stock is released.
“The costs involved to date have been minimal. We have to pay VAT which we can then claim back.
“It’s the nuisance factor. We could end up with an awful lot of accounts set up with clearing agents.”
Investments continue
But despite the challenging business environment, he is continuing to invest in the retail business.
This includes a new whisky shop, a change of layout and expansion of some departments.
“We are investing in the shop floor at the moment, expanding some departments, every wall has been painted,” the managing director added.
“We absolutely believe in retail experience and we want to be the best.”
Rising sales and profits in 2019/20
Accounts that will soon be published show The House of Bruar increased its sales and profits in the year to January 31 2020.
In that year the holding company achieved a 6% rise in sales to nearly £33 million.
The majority of turnover was achieved through retail operations and due to visitor numbers of two million people in the year.
The earnings before earnings before interest, taxes, depreciation, and amortization rose 10% to £6.6m.
