99p Stores profit up but growth slows

Pretax profits came in at £7.2m while turnover advanced 17% to £270m. The retailer also reported the “strongest” like for like figures in the market up 3.7%.

In documents posted at Companies House the value retailer said it had been “successful” in developing the business.

Gross profit margin increased by 0.6% to 21.5% due to improved buying and increased focus on stock loss.

99p Stores commercial director Hussein Lalani told Retail Week growth in the previous year was exceptional.

“The previous year we had exceptional growth. We moved into a new warehouse and the company hit economies of scale,” he explained.

“We opened a lot of new stores last year with the majority of them opening in the second half of the year and a full year of trading is needed to see the real sales impact.”

The retailer opened 38 new stores in the period, comprising 21 of its single price point 99p Stores, 14 of its multi-price Family Bargain stores and three Euro 50 stores in Ireland - its first overseas presence.

99p Stores said it had continued developing its Family Bargains chain, opening stores in retail parks. It said ranges improved in store, which included adding new white goods, electricals and improving garden ranges.

At its single-price fascia, 99p Stores said it had now become a “one stop shop” for food shopping after rolling out its meat and frozen foods offering to all stores, as well as introducing fruit and vegetables.

Since the year end growth has continued at the retailer which launched a further 13 stores, bringing the retailer’s store estate to 193. It plans to open more than 100 new stores across the next two years

99p Stores said more locations have been secured as it continues to expand.