TJ Hughes drove sales up by 9.1% in the year to January 31, thanks to a new breed of “smart shopper”.
Turnover rose to £261.3m, and the 49-strong discount department store chain reported a 30% increase in EBITDA to £9.2m.
Commenting on the results, chief executive Sue Tennant said the stores were “now attracting a different type of shopper who is turning to TJ Hughes because they find high value items at bargain prices.
“These ‘smart shoppers’ are finding that they can come into our store, or shop online, and buy top brands at reduced prices. Once they realise how much they are saving they don’t want to go back to paying the premium price. This new group of customers is going to stay with us for the long term.”
Last month accountancy firm PricewaterhouseCoopers predicted just such an outcome for discount retailers. It said that the recession had bred a new culture of bargain hunting amongst consumers, and that it would carry on after the recession.