House of Fraser promises shopping for him and her

Chief executive John Coleman says up to 400 jobs will be created when the British designer label chain opens in Dublin in spring 2005.

For a corporate heavy hitter, Mr John Coleman is refreshingly frank. "Men don't like shopping," says the House of Fraser chief executive. "We know that. We're not trying to change them."

As House of Fraser, the British designer fashion chain, prepares to open a store in Dundrum, south Dublin (its first non-UK opening), Mr Coleman admits it is the female shilling that the group will be targeting in the first instance.

Shopping as a recreational activity is enjoyed mostly by women. They like window shopping, they like trying on different clothes, they like going for a coffee. That is the type of all-in experience that House of Fraser has built its reputation on.

House of Fraser has also capitalised on consumers' deepening love affair with designer labels. Among its top-sellers are Armani, Diesel, Polo, Ralph Lauren, DKNY, French Connection, Elle Macpherson, Calvin Klein and Tommy Hilfiger, in addition to the in-house brands Fraser, Linea, and Platinum.

With the Republic's appetite for hip labels near insatiable, the company is confident it has chosen the perfect moment to establish an outlet here.

"Choice is what most consumers are demanding now. They are tired of the same three or four brands - they want to have the pick of 15 or 20 brands. And they want something exotic and individualistic," he says.

"They also expect convenience. They like things to be under one roof. So much hassle comes with shopping nowadays. It is a retailer's job to make the experience as pleasant as possible."

It is a philosophy that House of Fraser has turned into an extremely lucrative formula.

Turnover across 49 stores has climbed 70 per cent since 1996, a remarkable period of growth that has coincided with Mr Coleman's appointment as chief executive.

However, recent economic stagnation has not been kind to House of Fraser; in the half year to the end of July, losses after tax were £3.9 million sterling (€5.6 million), compared to £5 million for the same period in 2002, although gross profit margins rose by more than 20 base points.

Establishing a presence in the Republic is a challenge Mr Coleman looks to with relish. Not that the group plans to spend a fortune on marketing.

Consumers here are familiar with House of Fraser partly because it once owned Switzer's department store in Dublin, he says. "I don't think we'll have a problem building a strong brand in Ireland. Shoppers already seem to know what House of Fraser stands for."

The young and affluent will be the chain's target market. Mr Coleman agrees it is a demographic that might not have existed here a decade or so ago.

"There is a lot more disposable income around right now. And shoppers are much more discerning about how they want to spend their money. We believe there's a huge gap in the Irish market, which House of Fraser is perfectly positioned to fill. Nobody offers as many designer brands under one roof as we do."

Larger than originally planned at 133,000 sq ft, the four-storey Dundrum branch is modelled on the sprawling House of Fraser flagship store at Kent's Bluewater shopping centre, the biggest mall in Europe.

The south Dublin suburb was chosen because of its large, affluent population and proximity to transport links - including Luas when it is eventually completed. Some 400 jobs are expected to be created when House of Fraser opens in spring 2005.

"We were asked why we didn't decide to locate in the city centre but we feel Dundrum is perfect for our needs. The opportunity became available at the right place and at the right time," say Mr Coleman.

House of Fraser - established in 1849 by a Glasgow draper - will arrive in Ireland with a somewhat torrid history. In 1985 the loss-making chain, which then included Harrods of London, was purchased by the Al Fayed family in a £615 million deal. The new owners promptly replaced the famous stag's head logo with that of a stag leaping from a triangle. Other changes were not as subtle.

As losses mounted, branches were closed and more than 1,000 staff laid off. At the same time, House of Fraser began the process of reinventing itself as a vendor of designer brands, styling itself as the choice of "fashion lovers and smart career movers".

The group went public in 1994, although Harrods remained a fiefdom of the Al Fayeds. Under a new management team, House of Fraser shifted upmarket, a strategy that quickly reaped results.

With turnover rising, House of Fraser decided to introduce its own Linea brand in 1997. So successful was the move, the Platinum and Fraser labels followed a year later. A succession of new in-house labels - including Collection Menswear and Linea Home Line - have since come onstream.

Should the Dundrum venture prove a success, House of Fraser will consider further expansion in the Republic, says Mr Coleman. But the group is by no means set on a string of openings here, although a Belfast store is planned for 2007.

"I don't want to create the impression that we're going to open a huge number of stores here. We don't have a long-term strategy. Ireland is ready for its first House of Fraser - we'll see how it goes from there."

And he has encouraging words for bored husbands/boyfriends dragged to the new store against their better judgment.

"We know a bloke just wants to go in and make his purchase and get out while a woman prefers to linger. Hopefully, the experience we offer will be pleasant to both," he says.