// Wilko profits and sales drop in “challenging retail landscape”
// Wilko’s 414 stores remained open during the Covid-19 restrictions
// The retailer recorded an overall sales decline of £107.2m last year
Wilko has reportedly seen its full year pre-tax profits and sales decline thanks to a “challenging retail landscape”.
For the year to February 21, Wilko’s pre-tax profit was at £4.4 million, down 61.4 per cent year-on-year.
The retailer’s EBITDA during the period stood flat year-on-year at £48.3 million, dropping by a mere 0.4 per cent, Retail Week reported.
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Wilko’s 414 stores remained open during the Covid-19 restrictions after it was recognised as an essential retailer.
The retailer recorded an overall sales decline of £107.2 million last year to £1.36 billion, a seven per cent drop from the previous financial year.
As the pandemic led to a decrease in footfall, Wilko said its shopping centre and high street stores were the hardest hit, with footfall dropping 40 per cent year-on-year.
Wilko’s digital sales increased by 89 per cent during the period.
Meanwhile, Wilko said it did not participate in the government’s furlough scheme throughout the pandemic. The company also completed early repayment of the VAT payment deferral scheme.
Wilko reported a £31.8 million investment across supply chain, IT and brand development last year.
“There’s no escaping the impact the pandemic has had on us all and that traditional British retail has been particularly badly affected,” Wilko chief executive Jerome Saint-Marc said.
“Our focus has remained on further developing our omnichannel offer, controlling cash, developing great product and investing in our future and given all the challenges of such difficult trading circumstances the directors are satisfied with the 2021 results.”