House Of Fraser is set to axe failing stores or reduce the size of others as it battles falling sales.
The struggling department store chain, owned by Chinese billionaire Yuan Yafei, said it would cut its property bills after a sales slump during the crucial Christmas period.
It has 61 branches – 58 of them in the UK – but chief executive Alex Williamson said all were being reviewed.
A source close to the firm told the Mail that its Hull store was one of those under threat, although Williamson said no decisions had yet been made.
Slump: House of Fraser is set to axe failing stores or reduce the size of others as it battles falling sales
The shake-up comes after the retailer admitted sales for the six weeks to December 23 were down 2.9 per cent on the previous year, a fresh blow after it reported a shock half-year loss in September.
It has also written to landlords seeking cheaper leases, a move that sparked fears about its finances.
Yesterday Williamson, 43, insisted House Of Fraser was focused on profits and would not resort to discounts to boost sales.
He added: ‘What’s important is to keep our discipline in selling those products that are loved by customers and profitable for House Of Fraser.’
And in an unusual step designed to ease concerns, the firm produced a statement from Yafei backing its turnaround plans.
The 54-year-old, whose company Sanpower bought House Of Fraser for £480million four years ago, said: ‘Sanpower is fully committed to its long-term investment in the UK retail market, and to continuing to provide all the necessary support to ensure House Of Fraser’s success as the leading UK premium department store chain.’
When Sanpower, chaired by Yafei, bought House Of Fraser, it declared plans to grow the business and expand into China.
However, by December 2016 only one outlet had opened, in Nanjing, and the company had to wait until last year to get its first cash injection of £25million.
Under Williamson it has launched a turnaround effort to overhaul its product range and stores while trimming costs.
The chief executive, brought in last May, said House Of Fraser wanted to cut property costs by 30 per cent within five to ten years. It has closed a store in Leicester and is due to shut another in Aylesbury.
He said further closures were not the first option.
He added: ‘It will be based on store-by-store conversations, because there is a whole range of ways we can deliver against that objective. There are options in place and we will consider all of them – we do not have any firm plans yet because we are still talking to landlords.’
Yesterday a source close to the company said many stores needed a revamp to make them more ‘experience-based’.
This approach, adopted by rival John Lewis, was taken by House Of Fraser when it opened its first store for a decade last year in Rushden Lakes in Northamptonshire. It included a champagne bar and Caffe Nero alongside womenswear and beauty brands.