Holland & Barrett sales rise in ‘early stages’ of transformation

The health and wellness specialist said like for likes advanced 3.3% in the three months to December 31, 2019. Total sales increased 4.8%.

Holland & Barrett said it enjoyed “accelerating sales growth” both in stores and online, with ecommerce sales spiking 22%.

It said growth in its online personalised subscription proposition was “particularly strong” over Christmas, buoyed by “focused promotions” and the introduction of new ranges.

All of the retailer’s international markets, which include China, Belgium, Sweden and the Netherlands, posted revenue gains during the crucial trading period.

Holland & Barrett used its trading update to reveal that it had “£26m of cash on hand” at the year-end and insisted that it remained “well-positioned to drive investment in its digital and technology capability and in the extension of its product range and services offer”.

Last month, it emerged that lenders to Holland & Barrett were ratcheting up the pressure on the retailer’s owner, L1, to provide a cash injection into the business.

Billionaire Mikhail Fridman’s group has been urged to pump more money into the chain in a bid to weather an increasingly ferocious storm on the high street.

According to The Sunday Times, concerns were stoked following a bondholder update by new boss Tony Buffin in November. Following the meeting, bonds were reported to be trading at as little as 50p in the pound.

Buffin, who took the reins in May, said today: “I am pleased with the progress our support centre, distribution and store teams have made in putting customers back at the heart of our business.

“Our customers are increasingly telling us they want to live more healthy lifestyles, to look better and to do so without compromising on the ethically and sustainably sourced products and services they buy.

“H&B is ideally placed to meet these demands in growing markets and although we are still only in the early stages of transforming the business, I would like to thank all of our teams for their hard work in the run-up to Christmas.”