Discount chain reports rise in its turnover – and losses

ALMOST ALL OF THE 450 STORES ARE OPEN, SELLING ESSENTIAL GOODS

POUNDSTRETCHER managers say they have only closed a handful of shops as they strive to keep the business going during the coronavirus lockdown.

The discount supplier has been allowed to keep most of its 450 stores open because of the essential goods it stocks, including food, toiletries, household medicines and pet food.

New trading figures for parent company Crown Crest showed turnover for its last financial year was £442 million – up from £397 million a year earlier.

However operating losses grew from £4.9 million to £9.4 million, due to pressures on the wholesale side of the business as well as Poundstretcher sales falling.

Even before the coronavirus outbreak the business, based in Kirby Muxloe, was planning a “significant further restructuring” to achieve sustainable profits and cash generation.

Group finance director Hemant Patel said sales had continued as social isolation kept people at home – though not at the level of the supermarket chains.

He said: “At the moment only a few of our stores are closed, which are inside shopping centres that have shut.

“Otherwise, all our stores are open, and there’s no reason why they should not continue that way.

“We have got 450 stores in the estate and maybe five are closed.

“We are allowed to open because we sell some of the essential products that people needs and we are also quite big on pet foods.

“We had a busy run-up in the three weeks before the lockdown as people were panic buying and still going out.

“Things are back to because the panic is over.

“Because the stores are open, everything else within the business is operational, which will stay that way unless something changes.

“The warehouse has to run, otherwise you can’t service the stores. Head office is also running with, where possible, staff working from normal, home. The main thing is for everyone to keep safe.”

He said the business saw sales of its Cosy Soft toilet roll range triple in the build-up to the lockdown, as families panic bought.

He said: “Toilet roll sales during those three key weeks were probably no different to any other retailer.

“Stock has been coming in, but as soon as it does it is still selling out.”