Flying Tiger puts the brakes on UK expansion as profits tumble

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// Flying Tiger to halt store expansion
// Profits dipped 74% for the year end to December 31, 2018

Flying Tiger Copenhagen will stop its rapid expansion plans as it battles a sharp fall in profits.

Since arriving in the UK in 2005, Flying Tiger has opened 47 stores nationwide, selling low-price party items, homeware and toys.

Accounts filed show sales were down from £48.1 million to £47.3 million for the year to December 31, 2018.

Profits fell 74 per cent for the period, which was blamed on an increase in expenses and interest payments.

“We generated a profit in 2018 – albeit not at a level which was satisfactory,” Tiger Retail Ltd managing director Peter Casey told the Mail on Sunday.

In its Companies House report, Tiger said the main risks to sales were “a decline in consumer spending, falling footfall in high street shopping centres, and the brand failing to renew itself and stay relevant”.

Casey added: “The UK retail sector is experiencing challenging times with consumer spending pressures, increasing costs – especially rent and payroll – and significant numbers of store closures. Tiger Retail has not been immune to this.”

Casey said was “very positive” about the future for the company in the UK, although Tiger’s end of year filing cited the disruption Brexit had created in retail market, adding “these uncertainties could have an adverse effect on our business, financial results and operational performance”.

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4 COMMENTS

  1. The problem with these stores is they sell a lot of throwaway junk that people are now buying less of as we become more environmentally aware of waste. I have been in a couple of their stores and nothing is a “need” it is mainly novelty tack or home items that are such poor quality they are destined for the bin in a few months.

  2. The new tacky £1 section is awful, also confusing because it look as if all the stuff in the shop will end up in the new £1 section… so why buy when you can wait? As it is mostly impulse stuff anyway, you don’t care if you go back and it is all gone and didn’t get it for £1. The new owners are running it into the ground and blaming “falling foot fall and consumer spending” when they are to blame!

  3. Basically turning into pound shop. You see the store staff are overworked and you can tell the standards have dropped massively. The quality is not worth the money you pay for.

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