Thorntons closes 36 stores as it rebalances business

Thorntons has seen FMCG revenue offset declining retail revenue as it continues to rebalance its business.

Group FMCG revenue rose 17.3 per cent which offset an 11.1 per cent decline in revenue in stores. Like-for-like retail revenue inched up 1.1 per cent and consumer direct sales surged 15.4 per cent. Total sales across the company rose 0.7 per cent for the nine weeks and full year up to and including 28 June 2014.

The company said it was pleased with the rebalancing of its trading and added that profit is anticipated to be in line with market expectations.

Jonathan Hart, Thorntons‘ chief executive said the market remains competitive and that the firm saw no signs of improvement in consumer spending on the high street.

He said: “We are pleased to report a positive overall performance across the business for the year… we continue to focus on the profitability of the business which has improved considerably over the past three years.”

David Alexander, consultant at Conlumino, commented: “Consumers are now accustomed to seeing Lindt bars, organic chocolate from Green & Blacks and, increasingly, chocolate from high-end cocoa producers like Montezuma‘s in their local convenience store, while the rise of the Hotel Chocolat chain is bringing gourmet confectionary to the high street.

“Against this backdrop, Thorntons has found itself occupying an uneasy middle ground between premium and mass market appeal.”


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