£12m fillip for Austin Reed flagship

AUSTIN Reed is spending £12.3m to redevelop its flagship store in London's Regent Street, which it says will boost the outlet's turnover by 40% and produce rental income from new office space. The store will remain open throughout the rebuilding, which starts in the summer and is due to end by the autumn of 2003.

The listed building opened in 1926 and is said by Austin Reed to be London's first department store to be created specifically for men, although for the past 30 years it has also sold women's clothing as well.

Chief executive Roger Jennings said the net retail space would rise by 15% to 32,250 square feet but turnover would go up by 40% because more customers would come to the store, circulate and therefore spend more. The redevelopment will create 13,000 square feet of independent office space, which will be income earning from the summer of 2003.

Austin Reed now has 47 stores and 26 concessions in Britain, selling men's and women's formal wear and men's smart casual wear. The Austin Reed brand is also licensed in many countries overseas.

The shares were up 1/2p at 125 1/2p in early trade.