Notonthehighstreet’s investment drive has led to deepening losses despite a rise in sales.
Investments in its digital capabilities and brand positioning during the year to March 31 meant the online retailer recorded a pre-tax loss of £8.6 million compared to the £3.8 million shortfall notched the previous year.
Nonetheless, Notonthehighstreet raked in £40.7 million worth of revenue during its fiscal year, a 5.4 per cent increase that was boosted by a double of sales in its experiences division.
However, sales in core divisions – such as jewellery and home – remained largely the same compared to the previous year.
“We’re still growing in terms of traffic and sales, but it was a year of investment,” chief financial officer David Philips told Retail Week.
“The results was smack in line with our expectations and where the board wanted us to get to.
“We acquired over one million new customers last year and are on track to do the same again, but we’ve probably put a little more focus this year on talking to existing customers.
“This is a real destination for them to shop so we’ve made quite big changes to our website to cater to them.
“These have come into effect since the accounts ended and from where we have traded for the last six months versus a year ago there has been a quantum difference in profitability.”
The news comes as Notonthehighstreet grapples with a series of senior departures in the past 12 months, including chief information officer Hugh Fahy, customer director Hannah Webley-Smith and most recently chief executive Simon Belsham.
In addition, a redundancy consultation process in its head office in the recent fiscal year led to around 20 job losses.