Saturday, November 25, 2017

Hobbycraft posts confident results after “Buttoning Down Prices”

81

Art and crafts retailer Hobbycraft posted a strong rise in annual revenue aided by ecommerce improvements, more stores and a greater focus on cutting prices.

Total sales rose 7.6% to £151.8m in the year to 21 February. Like-for-likes were not provided.

Online revenue grew by 36% and now accounts for 7% of total turnover.

Hobbycraft introduced its “Buttoning Down Prices” strategy this year as it attempts to offer lower prices across the board. The campaign cut the prices of 2,000 products and initiated “hundreds” of £1 lines for a “simpler” promotional strategy.

“Strong growth was driven by our newly-created distribution centre and supply chain initiatives, together with an expanding store network and established online trading platform” said Chief executive Catriona Marshall.

“This year‘s performance demonstrates that we are on track to achieve further significant growth in sales, market share and EBITDA.”

Hobbycraft currently operates 85 stores and opened a further small format site in Borehamwood and Greenwich last year. A further two stores are in the pipeline to open in Newcastle and Ipswich this year.