The Original Factory Shop

Pioneering UK value retailer

The Original Factory Shop is a value retailer with an offering equivalent to a mini department store. Its outlets are predominantly located in small towns and its trading strategy is to offer a highly cost-effective and convenient alternative to consumers who prefer to shop locally. The growth strategy is to continue rolling out stores across the UK and grow the multi-channel offer.

A robust business

The Original Factory Shop is a value retailer with nearly 200 outlets across the UK - when Duke Street acquired the company it was 87 - selling a wide range of discounted merchandise including clothing, sportswear, footwear, electrical and household goods, gardening, toys and gifts, fashion accessories and beauty products. A large element of the goods it sells are good value branded or special purchases or were originally made for other high street stores and supermarkets. This allows the business to benefit from better products in a tough market.

Given the location of its stores, The Original Factory Shop faces limited local competition. There is also a significant opportunity to open additional stores across the UK, grow the multi-channel element of the proposition and improve sourcing.

A viable concept for development

A key element of what makes The Original Factory Shop different from other value retailers is the fact that most of its outlets are situated in small towns rather than urban high streets or out-of-town shopping centres. As well as offering great value for money to people who want to shop locally, this gives customers the convenience of shopping at a department store without having to travel to a bigger town.

Our market due diligence confirmed that the company’s concept had substantial potential for growth, and identified a large number of suitable sites across the country.

We are now working closely with the management team as they continue to open more outlets across the UK, with a target to open 15 new stores a year, drive multi-channel sales and take advantage of the current environment to improve our range as other retailers/brands look to shed unwanted stock.