THE Brown Thomas group will almost double its trading profits this year and will enlarge key parts of its retail business in 1997, the company's managing director, Mr Paul Kelly, has said. In an interview, Mr Kelly hailed the move by the group's flagship store across Graft on Street as a great success, and predicted increased turnover in 1997.
Mr Kelly said he was happy with the direction the group had taken. The Grafton Street store had maintained its position as Dublin's most prestigious shop, and Cashs in Cork, Todds of Limerick and Moons of Galway were all doing well, he added.
"We'll have a trading profit better than £2.5 million this year, Mr Kelly said. "In 1995, which was a year of huge changes for us, we were at £1.5 million, compared to £400,000 in 1994."
Turnover, too, was up. The Graft on Street store was likely to reach a gross turnover figure of £54 million by December 31st, against £50 million in 1995. The target for 1997 was £58 million.
"We now do more turnover in this store than Switzers and Brown Thomas did combined," he said.
The next 12 months will see a flurry of development by the group, Cashs in Cork is to have a £10 million relaunch, and quite possibly have its name changed to Brown Thomas. The new look will also see the store's 50,000 sq ft of retail space expanding to 75,000 sq ft.
A-Wear, the group's youth fashion chain, is being geared up for even more prominence, and space.
When Brown Thomas moved to the old Switzers building, Marks & Spencer took its place. As part of this deal, Brown Thomas got Marks & Spencer's old store, further up Grafton Street.
At the moment, the group is using it as a dedicated Christmas shop, replete with Santa Claus and rows and rows of electronic goodies for children.
As soon as the new year sales are over, Brown Thomas will close the store and start refurbishing it for A-Wear. Next August, A-Wear - which is now based right beside the Christmas shop will open there. This will give it more than double the retail space it now has, and make it a major player on Grafton Street.
Meanwhile, Mr Kelly said, the Brown Thomas store would be expanded. Some 20,000 sq ft of stock room would be converted to retail space and there would be a new, 375-berth car park on Clarendon Street with a footbridge leading straight into the second floor of the department store.
It is perhaps this plan that makes him wary about the current Government plan to run the Luas at street level rather than underground: "If it's going to be above ground, it's going to put cars off the streets. Our public transport system isn't up to scratch and our car parks aren't up to scratch."
"There are 50,000 new cars in Dublin this year so far - are these going to disappear? The attitude seems to be take the money from Europe quick and do it, because we won't be round in 10 years time anyway'. My worry would be that they'll put it in, then realise their mistake in a few years' time, and we'll have to dig it up and start boring holes in the ground," he added.
He was also worried about how the euro would be introduced and said the Government was not consulting retailers on the issue.
"Dual pricing over two years would be expensive," he said. "Also, why introduce the euro on January 1st? That's the busiest time of the year for us. Decmalisation happened overnight, and in February, the slackest month."