Retail entrepreneur Theo Paphitis has criticised the government for a “disappointing” attitude to the industry’s importance as his business achieved improved profitability.
Paphitis, whose eponymous retail group comprises stationer Ryman, hardware specialist Robert Dyas and lingerie retailer Boux Avenue, said he had increased investment in his brands, which have traded through challenging conditions the government is doing little to address.
He said: “There is no doubt that retailing, particularly on high streets, has tested us to the full, especially coming out of the Covid-19 pandemic, and the lack of any much-needed acknowledgment from the government of retail’s contribution to local communities and economies continues to disappoint.
“They continue to kick the retail business rates can down the road.”
The latest trading results showed that sales at Ryman edged down slightly in the year to March 2024, when store sales rose, and ecommerce was slightly down as the retailer focused on profitability in the latter channel.
EBITDA of £2.7m represented an improvement of approximately £4m year on year.
Ryman’s trading margin improved as footfall increased in city-centre locations, which were hit hard during the pandemic and its aftermath and are a key channel for the retailer.
The business repaid a £5m Coronavirus Large Business Interruption Loan last month and has launched initiatives such as Ryman Design stores, an app and a loyalty scheme.
Paphitis said: “I am very pleased with the progress made by the Ryman business over the last two years as it recovered from the impact of the pandemic. I increased my personal involvement in the business as CEO 16 months ago.
“As well as increased time in the business, I have invested and committed to further funding to ensure Ryman has the resources to build on this progress.”
At Robert Dyas, EBITDA for the year to March 2024 was ”broadly in line” with the £0.2m generated last year, despite store like-for-likes being down by 3.2%, hit by factors such as mild winter weather. Ecommerce now accounts for 40% of sales at the business.
Paphitis said: “Robert Dyas has continued its development and has been successful in offering a truly multichannel proposition to our customers.
“We have carefully opened new stores, investing in the high street and its communities, and are looking for further opportunities as well as extending our joint stores with Ryman, which our customers have responded well to.”
EBITDA at Boux Avenue last year is expected to show an improvement of £2m in 2023. Boux has benefited from trading partnerships with retailers such as Marks & Spencer and did well at peaks such as Black Friday and Valentine’s Day.
Paphitis said: “I have continued to invest in the Boux Avenue business and, despite a very challenging year to March 2023, I am pleased that progress has been made in the last 12 months. In particular, the momentum since November through our key trading periods is encouraging.”
Formal results for the group for the year to March 2023 are being filed at present.
Related Companies
- Previous
- Next
No comments yet