Thorntons to revamp stores after poor trading hits its performance

The ailing chocolatier is to improve store layout, displays, lighting and merchandising as part of the revamp.

A prototype opened in Birmingham in October followed by Liverpool last week. The Midlands store “traded strongly” over Christmas, said chief executive Jonathan Hart.

The retailer reported that pre-tax profit plunged from £8.4m to £3.1m, as poor trading and promotions hit performance. After stripping out £2.4m of exceptional items, profits fell to £618,000, largely due to onerous leases.

The retailer is to explore opportunities to close a further 60 company-owned stores on top of the 120 closures already revealed in June, as it struggles with an underperforming estate.

At present Thorntons has 344 company-owned stores and 230 franchises. It aims for an own-store estate of 180 to 200 shops and further franchised shops.

Own-store sales fell by 7.9% to £68.3m during the period, while like-for-like sales fell by 5.5%. Overall, revenues dropped £3.5m to £130m.

Thorntons expects its commercial arm to become its main sales channel in the next three years. Sales in the division grew 6.9% to £48.3m.

Franchise sales fell 13.4% to £6.7m in the period. The ailing retailer has slashed the prices it charges franchisees to encourage greater take-up.

Partners now only have to pay £1,000 up front rather than £5,000 and can trade from a new “mini franchise format” in smaller shops.

The retailer insisted that its brand still appeals to franchisees. “In a weak market our brand continues to give strength and share,” Hart said.