Jaeger eyes new London stores as sales boom

"We are looking to open between three and five new stores," said Belinda Earl, the fashion retailer's chief executive.

"We are trading very well in London, both with British shoppers and with tourists thanks to the exchange rate."

She said the firm was scouring Covent Garden, the City, the West End and Canary Wharf for possible sites, although no deals have yet been signed.

Jaeger gave fresh evidence of a recovery at the top end of the high street. The retailer's sales rose 12% from the beginning of March to May 15 compared with the period a year earlier.

But sales during the year to the end of February were flat at £85.5 million, as trading suffered in the first six months from shoppers cutting back.

However, annual earnings increased 16% to £7 million as Earl said that the company had focused on "profitable growth" during the recession.

Jaeger, whose customers are mostly aged over 35, is also seeking to attract younger shoppers. It is launching a "boutique" line for women aged 25-plus in the autumn and is opening a "pop-up" shop off Carnaby Street in September to sell the clothing.

Earl added that sales at its branch on Cheapside in the City were "hard hit in the recession but have now bounced back".