Merchandise retailer ‘sleighs’ Christmas demand with six-figure Lloyds funding

On the third day of Bdaily’s 12 Days of Christmas, we hear from a Black Country merchandise retailer which is forecasting a ‘bumper’ Christmas thanks to a £200k funding package from Lloyds Bank to help it meet strong seasonal demand.

Based in Cradley Heath, Sandwell, Merchoid sells licenced merchandise from brands including Harry Potter, Marvel and Star Wars. The business sells to customers across the UK and Europe online.

Merchoid experiences high levels of seasonal demand for its products, including its popular branded Christmas jumpers, Loungefly bags and gift items. The retailer typically sees around 60 per cent of its trading over the Christmas period, with significant concentration around shopping events such as Black Friday.

The funding from Lloyds Bank has helped Merchoid support its working capital, ensuring it has enough products available to meet its high levels of seasonal demand. It has also enabled the business to invest heavily in social media advertising, to maximise its sales opportunities over the Christmas period.

The funding also allows the retailer to hire seasonal workers, boosting its headcount from 15 to around 35 over its crucial trading period. Thanks to the additional funding, Merchoid’s group sales are already up 25 per cent compared to the same period in Q4 of last year, with the business forecasting strong trading the rest of the year.

Lloyds also supported Merchoid with the acquisition of its own warehousing facility three years ago, bringing its systems and processes in-house to more efficiently manage its sales patterns and stocking needs. Having stock available on-site has also enabled the retailer to attend Comic Con events throughout the year, generating an additional revenue stream.

Simon Ward, co-founder and CEO of Merchoid, commented: “As a business which experiences such peaks in seasonal demand, it’s crucial we make hay while the snow falls! The funding from Lloyds Bank allows us to both maximise the demand we can generate, as well as then supporting us to fulfil it.

This helps ensure we’re making the most of our valuable golden quarter. “Our sales are highly trend dependent with this year’s best-selling Christmas jumpers driven by demand for Dungeons & Dragons, Teenage Mutant Ninja Turtles and Yu-Gi-Oh!

“We’ve also produced products including Warhammer scented candles and Christmas baubles, which have proved popular. It’s a real challenge scaling up production to meet these trends so the funding from Lloyds Bank has been integral to making sure we’re primed for the busiest trading peaks.”

Rob Taylor, relationship director at Lloyds Bank, added: “The funding will not only benefit Merchoid but also its suppliers, many of which are local. For example, their Christmas jumpers are knitted nearby in Leicester, meaning additional support for another local manufacturer.”

By Matthew Neville – Senior Correspondent, Bdaily

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