Mountain Warehouse targets openings for new store format

The new-model shops are planned for the UK and overseas markets, such as New Zealand, and follow openings in Colchester, Essex, Rugby, Warwickshire and Auckland, New Zealand.

They enable the retailer to showcase more of the range offered online and its recently acquired brand Animal. Mountain Warehouse this month opened its biggest branch to date, measuring 12,000 sq ft, at Bournemouth’s Castlepoint shopping centre.

In its last financial year, to the end of February 2022, Mountain Warehouse achieved record sales of £302.6m, up 26% year on year and 4.6% above pre-pandemic levels.

The retailer made a pre-tax loss of £102,000 versus a profit the previous year of £8m, resulting from factors such as the impact of lockdowns, higher costs such as freight and investment in a new distribution centre to support future growth. However, Mountain Warehouse made an operating profit last year of £11m.

The sales uplift was driven by the expansion of the online range, which doubled to 30,000 products, enabling a 63% uplift from ecommerce compared with pre-pandemic levels. The retailer said it has subsequently had a “strong recovery” at its 368 stores.

Mountain Warehouse has also renewed a £100m banking facility with HSBC, NatWest and RBC, which it said was “a vote of confidence in the future, ensuring resources to continue expanding”.

Founder Mark Neale said: “At the start of the pandemic, we were standing on a cliff edge staring into the abyss. All our shops were shut, our people were furloughed and we were in a perilous position.

“Two years on, we have recorded record sales and are trading strongly. There are still some strong headwinds from freight costs, supply chain headaches, energy costs and rising inflation. But we are growing again – relocating stores and selectively opening new ones, and investing in our online business.

“We opened our biggest store ever in Bournemouth 10 days ago, with a dedicated area for the Animal brand, and it has got off to a flying start.

“If we can find the right stores in the right locations, we will open in new towns. We recently opened in Petersfield, Hampshire, in a former Laura Ashley store. It is our fifth branch in former Laura Ashley stores. We have also opened in five or six ex-Topshop stores.”

The retailer said that Christmas trading so far has been “strong” and the cold weather had benefited sales of products such as padded jackets.

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