House of Fraser targets efficiency savings from logistics investment 20 September 2017

House of Fraser, the UK and Ireland premium department store group, launched a Transformation Programme at the beginning of Fiscal Year 2018 based on three key pillars, Product; Customer; and Infrastructure, within an overarching objective of transforming its interaction with its customers from a simple transactional nature into an experiential lifestyle-led relationship.

The Group has provided an update on its progress and its performance for the 26 weeks to 29 July 2017. Part of this update was related to supply chain developments. The retailer embarked on a £18.0 million investment in its distribution centre, of which £10.0 million will be provided by the Group’s majority shareholder, to increase capacity, drive operational efficiencies and improve profitability.

The Company stated that the project is progressing well and is expected to deliver £5.0 million of efficiency savings in the second half of the year, rising to a run rate benefit of £15.0 million of efficiency savings by the time the project completes in mid-2018.