Member Article

Profits fall 63% at Wilkinson

Profits at discount retailer Wilkinson were down 63% in the year to February, as the high street chain cited tough trading conditions.

In the company’s trading update, Chief executive officer, Stuart Mitchell, said: “this is considerably less than last year, or than we planned.”

Wilkinson has undertaken a rebrand of 266 of its 366 stores throughout the year, and the firm hope to have completed a full rebrand by 2015.

Turnover was up from £1.56bn to £1.57bn, owing partly to 18 new store openings across the country.

Mr Mitchell said the company’s financial position remained “strong”, as net cash flow was down from £88.7m to £44.4m in 2012.

The company have also trialled a new store format, called ‘One Touch’ which aims to give consumers a “multi-channel experience”, whereby they can buy online and collect in store.

Some retailer commentators have suggested Wilkinson has been impacted by more aggressive price-driven formats, such as Poundland and B&M bargains.

Mr Mitchell added: “We have committed to a significant investment over the next three years in our business processes and technology in order to improve the way we support the business.

“We have also continued to invest in our internet and catalogue business in order to achieve our ambition of being a true multi-channel retailer.”

This was posted in Bdaily's Members' News section by Tom Keighley .