McEwens of Perth, one of the UK's last independent department store chains, narrowed its losses again last year, paving the way for a planned £1 million investment from its family owners.
The group's Inverness store has just launched a closing down sale ahead of shutting the doors for the last time on December 16 and managing director John Bullough said it was "very sad", especially for the store's 11 employees.
But he said the group had managed to bring losses down from more than £411,806 in 2010 and £234,118 in 2011 to £140,157 last year, adding: "We are budgeted to back into profit next year.
"We are concentrated on our core customer, the 40-plus lady."
The group, with stores in Aberdeen, Ballater and Oban alongside the flagship Perth store, managed to increase sales from £5.8m to £5.93m despite the disappearance of some concessions, and is now implementing a new investment-backed strategy.
In September, McEwens launched its children's store Mini McEwens as a "destination attraction", with a shopfit by local craftsmen. It has also invested in the expansion of its food hall in partnership with farm shop Loch Leven's Larder.
The next projects are expected to be an expansion of the store's cosmetics floor and the development of a rooftop restaurant.
Mr Bullough said: "We have had big challenges from concessions that have gone into administration, where they are not performing we are moving them onto a wholesale basis, and we are looking at some own-brand products as well." Interest charges fell from £150,811 to £132,359 while debt eased marginally to £2.87m
A cut in total average employee numbers from 151 to 130 helped McEwens get close to break-even at the operating level, the loss cut from £83,471 to £7798.
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