DEPARTMENT store House of Fraser has announced plans to open three stores in China as it reported record sales and profits in its first set of annual results since being taken over by a Nanjing-based conglomerate.

Like-for-like sales grew 5.8 per cent, driven by its “exceptionally strong” online arm, while bricks-and-mortar stores saw a 2.2 per cent rise. The total sales value for the year was £1.3 billion.

The 166-year-old retailer, which has a Skipton store, reported underlying earnings up seven per cent to £64.4 million in the year to January 31, with gross profit at a record £460.2 million.

Chief executive Nigel Oddy said: “We are pleased to report another year of record sales and gross profit and a further improvement in the group’s earnings.”

House of Fraser was snapped up by China’s Sanpower in a £480 million deal last September.

The group, which opened its first international franchise store in Abu Dhabi in 2013, will now look to open three large stores in Nanjing, Chongqing and Xuzhou.

The company said momentum continued into the new financial year, with sales for the 11 weeks to April 18 up 6.5 per cent alongside a further improvement in the gross margin rate.

Online sales increased 32 per cent last year and represented 15.4 per cent of trade after a redesign of its website.