Kirkcaldie & Stains is slightly ahead of budget for the five months to January 2015, following a significant loss of  $6.5 million for the 2014 financial year.

Despite the positive signs, Kirkcaldie chairman, Falcon Clouston, says the department store’s February summer sale is slightly down on last year and budgeted figures.

“We remain hopeful that the remaining winter months to August 2015 will be steady,” Clouston told the business’ annual general meeting.

A review of Kirkcaldie & Stain’s retail business has been wrapped up with initial recommendations currently under consideration.

The review specifically focused on e-commerce and the long term future.

“The online consultant, who has vast experience in e-commerce and marketing, reviewed our online store and made recommendations on where to make the best use of resources and where to invest and undertake new initiatives to drive growth,” said Clouston.

“The report has only just been received and is currently being considered. For the moment I can say that it does identify where the online store offering fits within our overall retail business model and highlights the key projects to be tackled if the online store is to deliver sustainable, acceptable growth.

“We will need to carefully consider the costs vs. the benefits of implementing the online strategy.”

Also engaged to review the business was Mary Devine, former MD of Ballantynes and a director of Briscoe Group.

“We have only just received her preliminary report, and it is premature to provide any indication of its conclusions. What I can say is that she identified the same three options recognised by the board.

“Each of these options is being weighed by the Board to ensure the best outcome for shareholders. In doing so we particularly recognise that retail is a changing and fast moving environment and the department store model is under significant pressure.

“Any significant investment in the retail business will need to be carefully assessed and we will need to be satisfied that this would deliver acceptable returns to shareholders.”

Devine’s recommendations include a three to five year turnaround of the existing business; combination of downsizing the retail offer and aligning with an external provider of direct distribution channels; or selling off the business.

Kirkcaldie & Stains CEO, John Milford, will part ways with the company at the end of February after eight years, with an executive search currently underway. If a suitable replacement is not found prior to Milford’s departure, an acting CEO may be appointed.