What's Happening?
Luxury womenswear retailer Jigsaw is set to expand its physical store presence after reporting a significant increase in sales during the 2025/26 Christmas period. The company experienced a 26% year-on-year revenue growth, with profit margins increasing by 35%, attributed to strong full-price sales and effective cost management. In-store revenues rose by 14%, online sales by 34%, and concession revenues by 46%. This growth 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. Additionally, the company will return to its refurbished former head office at Kew Studios.
Why It's Important?
Jigsaw's decision to expand its physical retail footprint highlights a broader trend in the retail industry where brands are re-evaluating the role of physical stores in an increasingly digital marketplace. The company's strong performance during the holiday season underscores the potential for brick-and-mortar stores to complement online sales, offering a tangible brand experience that can drive customer loyalty and engagement. This move could influence other retailers to reconsider their strategies, balancing online and offline presence to maximize reach and profitability. The expansion also signals confidence in the retail sector's recovery and growth potential, which could have positive implications for employment and local economies where new stores are established.
What's Next?
Jigsaw's expansion plans are likely to involve strategic location selection to maximize market penetration and customer accessibility. The company may also focus on enhancing in-store experiences to differentiate itself from competitors and attract foot traffic. As Jigsaw invests in its physical presence, it will be important to monitor how these new stores perform and whether they contribute to sustained revenue growth. The retail industry will be watching closely to see if Jigsaw's strategy proves successful, potentially setting a precedent for other brands considering similar expansions.
