Joules ready for online orders as stores lock down

DIGITAL SIDE OF BUSINESS NOW REPRESENTS 70% OF SALES

We are well positioned from an operations and financial perspective, having built on the experience and lessons from the spring lockdown Nick Jones, Joules chief executive, right

JOULES, the country casual clothes retailer, said it is ready to meet a rise in online demand as it puts all store staff on furlough for the latest lockdown.

Management said that they had stepped up capacity within their UK warehouse on the back of recent strong trading figures.

The business, which is based in Market Harborough, has 128 stores in the UK and Ireland.

All of its shops in England are shut for the four-week lockdown, while its Welsh stores will reopen on Monday, November 9, following the two-week lockdown there.

Its Scotland and Northern Ireland continue to trade.

Back in September, Joules chief executive Nick Jones said he had been encouraged by trading over the summer months as the business fought back from the first lockdown.

But even then he warned there were big doubts about how the peak Christmas trading period would pan out amid growing concerns over the pandemic.

In a fresh trading update, Mr Jones said: “Joules has continued to trade well with sales in the financial year to date ahead of the Board’s expectations.

“We have seen strong growth in our customer base during recent months, benefiting from our focus on digital marketing, the attractive locations of our stores and the increasingly broad customer offer through our Friends of Joules digital marketplace.

“As we enter the peak trading season, the retail sector in England faces the challenge of having to close non-essential stores for the next four weeks.

“Despite this difficult backdrop, Joules has a very strong brand and a flexible business model, which has underpinned the group’s robust performance to date during Covid-19.

“In addition, we are well positioned from an operations and financial perspective, having built on the experience and lessons from the spring lockdown.

“Our autumn/winter 20 collections have been well received by customers and our Friends of Joules digital marketplace continues to deliver growth ahead of our expectations.

“As a result, we enter the peak trading period in a strong position.

“Our e-commerce business now represents 70 per cent of our retail sales and we have made significant investments in capacity to ensure that we can continue to drive and satisfy demand through this increasingly important channel as we adapt to changing consumer behaviours.

“I would again like to thank all of Joules stakeholders, but particularly our colleagues, for their continued flexibility, loyalty and dedication through this very challenging period.”

The business turned over £39.6 million in the three months to June 30, with online sales up 63 per cent yearon-year. However total revenues were down 18 per cent as a result of its own stores – and shops where it has concessions – being closed for much of the spring. Mr Jones said the group’s balance sheet remains strong with net cash of £9.4 million and liquidity headroom of £57 million as of November 1, 2020.