What's Happening?
Luxury womenswear retailer Jigsaw is set to expand its physical store presence after experiencing a significant increase in sales during the 2025/26 Christmas period. The company reported a 26% year-on-year increase in revenues, with profit margins growing by 35%, attributed to strong full-price sales and effective cost management. In-store revenues increased by 14%, online sales surged by 34%, and concession revenues rose by 46%. This growth was driven by high demand for leather clothing, knitwear, and outerwear. The expansion follows a strategic reset initiated in the second quarter of 2025, which included a capital injection from the majority shareholder and the appointment of Tikki Godley as the new managing director. Jigsaw plans to invest
in new brick-and-mortar stores to enhance its brand experience and connect with its expanding customer base. The company will also return to its refurbished former head office at Kew Studios.
Why It's Important?
Jigsaw's decision to expand its physical store footprint highlights a strategic shift in the retail industry, where brick-and-mortar stores are being revitalized to complement online sales. This move underscores the importance of an omnichannel approach in retail, where physical stores play a crucial role in enhancing customer experience and brand loyalty. The company's strong financial performance and strategic investments indicate a positive outlook for the retail sector, particularly in luxury fashion. This expansion could lead to increased employment opportunities and economic growth in the areas where new stores are established. Additionally, Jigsaw's focus on customer insight and product quality positions it well for sustainable growth in a competitive market.
What's Next?
Jigsaw's expansion plans are expected to unfold throughout 2026, with new store openings aimed at bringing the brand closer to its customers. The company's return to its refurbished head office at Kew Studios will likely support its operational and strategic goals. As Jigsaw continues to invest in its physical presence, it may face challenges such as adapting to changing consumer preferences and navigating the competitive retail landscape. The success of this expansion will depend on the company's ability to maintain its brand identity and deliver a consistent customer experience across all channels.
