Top Secret boosts sales with deeper markdowns

In November 2018, Top Secret’s revenue advanced 11% year on year. The Redan Group, which consolidates the results of Top Secret apparel chain and TXM discount retailer, posted total revenue of PLN 53m last month.

“B2C sales in Poland have increased in November owed to cold weather in the second half of the month. Also, the fashion segment has a large group of regular customers, who make up the one-million-member strong Top Secret Club. Having direct contact with the Club members allows us to reach them with our attractive offering, which helps drive sales,” said Bogusz Kruszyński, the President of the Management Board of Redan S.A. “Unfortunately, higher sales were achieved thanks to markdowns, which were deeper than in the same period a year before” he added.

In November 2018, total sales of merchandise in the fashion segment amounted to about PLN 22m, having increased by 11% compared to the same period of the previous year. In that period, the retail space of chain stores selling Top Secret, Troll and DryWash brand products was reduced by 1%, to 37.2 thousand m2 at the end of November 2018. Cumulatively, revenue in the fashion segment amounted to approximately PLN 215m, up approximately 4% compared with the corresponding period of the previous year. Revenue from the sale of merchandise through Top Secret online stores in Poland and Ukraine in November 2018 totalled PLN 3.7m, having grown by 26% over November 2017. In January–November 2018, revenue generated by those Top Secret online stores was PLN 31.9m and was higher by 12% than in the same period of the previous year.

In the TXM discount segment, sales in November 2018 were estimated at about PLN 30m, a decrease by 11% year on year. Cumulatively, in the period January–November 2018 TXM’s sales totalled approximately PLN 310m and were some 7% lower than in the previous year. As at the end of November, the TXM store network included 388 own stores with a total area of 103.7 thousand m2, down 2% relative to the end of November 2017. Revenue from the sale of merchandise generated by the www.txm.pl online store in November 2018 amounted to approximately PLN 0.7m, having dropped by 32% year on year, and cumulatively in the first eleven months of the year it was approximately PLN 6.3m, down by some 27% year on year.

The Redan Group’s combined revenue of both segments in November 2018 reached approximately PLN 53m, having dropped by 3% year on year. In January–November 2018, revenue stood at approximately PLN 525m, having slipped by about 3% relative to the same period of the previous year. The retail space of all Redan Group stores at the end of November totalled 140.9 thousand m2, representing a decrease by 2% compared with November 2017.