Relationship Marketing Strategy and implementation

introduced first in the US in November 1988, and then in the UK and
Europe in early 1988. Laura Ashley Home stores (opened in slightly less
prominent city centre locations) contained a vastly widened product range
which included wooden cabinet furniture and a selection of glass, lighting,
and tableware. By now, though, the retail boom of the 1980s had run its
course, but the programme of shop openings continued in the hope that
the slowdown was a temporary pause. Profits for the group had peaked in
1987, but an underlying decline in sales per square foot was masked by an
overall increase in retail space (see Table 6.1.5).
In January 1988, amid rising concern for the financial well-being of the
business, Managing Director John James was promoted to Vice Chairman
and Chief Executive, relieving Bernard Ashley of some of his executive
duties. James’s workload increased further following the departure of
Finance Director, Peter Phillips, the following November. Measures to
arrest the decline in sales were introduced, but as 1989 slipped by, turnover
and group profitability continued to run in opposite directions. In the UK

438 Relationship Marketing

Table 6.1.4 Turnover by region, 1985–91 (£m)

Year UK & North Europe Pacific & Total

Eire America others

1984/85 39.7 13.4 40.1 3.2 96.4

1985/86 56.4 56.2 16.1 2.8 131.5

1986/87 78.4 66.5 21.6 4.4 170.9

1987/88 95.0 74.8 24.8 6.9 201.5

1988/89 125.9 90.2 28.5 7.8 252.4

1989/90 142.6 117.2 28.6 8.2 296.6

1990/91 143.5 136.2 40.7 7.1 327.5

Source: Laura Ashley Annual Reports.

Table 6.1.5 Retail sales per square foot, 1984–91

Sales PBIT sq ft Sales/sq ft

(£m) (£m) (000) (£)

1984 96.4 14.1 259.9 370.9

1985/6 131.5 18.0 357.0 368.3

1986/7 170.9 22.5 492.1 347.2

1987/8 201.5 23.1 629.8 319.9

1988/9 252.4 20.3 737.5 342.2

1989/90 296.6 (4.7) 816.4 363.3

1990/91 327.5 (6.7) n/a n/a

Source: Laura Ashley Annual Reports.