Record annual revenue and return to profit is not just good news for UK outdoor clothing retailer Mountain Warehouse but “reflects the return of customers to the high street after the pandemic”.
That’s the view of company founder and chief executive Mark Neale, who oversaw sales of £386m for the 52 weeks to the end of February, up 4% year-on-year, “the highest in our 27-year history”.
The group, which employs more than 3,700 people, also made a pre-tax profit of £26.2m compared to a pre-tax loss of £1.5m the previous year when it was impacted by additional costs caused by Covid-19.
Store revenues rose 7.1%, driven by 28 new or relocated locations. The new units included 21 in the UK, three in New Zealand, two in Canada and two in Poland.
“While our online business has seen a significant boost during the pandemic, we have continued to invest in stores and their success shows that customers are enjoying the choice and opportunity to shop how and when they want,” Neil added.
The group’s success also signals an increase in new store openings and relocations, with up to 50 additional units and relocations planned for FY25. It has already opened 20 stores since the end of the year, including Plymouth, Putney in south London and Llanelli in Wales.
The company has doubled the size of its store in London’s tourist hotspot Covent Garden and moved its store in Trow, Cornwall, to a larger unit.
In the UK, the latest strategy has been to open much larger stores, including some in popular retail parks including Bedford Retail Park, Maybird Retail Park in Stratford-upon-Avon, Malvern Shopping Park and Tunbridge Wells Shopping Park.
The larger outlets, some of which are located in former Topshop and Wilko locations, give stores space to stock a much wider range of products. They can also include dedicated sections for skiwear and showcase their Animal lifestyle brand, which they acquired three years ago.
The group has opened standalone pet stores in the beach towns of Padstow, Falmouth and Bude in Cornwall – with another Cornwall branch opening in St Ives and Abersoch in North Wales and Cromer in Norfolk.
Overseas, the group has opened three more stores in New Zealand, adding to its 24 stores already there, and three more in Canada, as well as its first store in Australia, which began in Brisbane. The group has already secured more locations in Melbourne, which will open before the end of October.
“The expansion has helped us protect our business from the volatility of the weather… something we have paid close attention to in recent years so that we can deliver strong business year-round,” Neil said. “The Animal acquisition has also helped us reach a lot of new customers. The brand is very popular and we are revitalising it for a new generation.”
“The summer season was also good for retailers, with record numbers of swimsuits, swimwear and changing gowns sold, as well as summer dresses, shirts, flip-flops and shorts,” Neil said.
The group continued to diversify its business by launching the Mountain Warehouse Marketplace, where third-party sellers can list their products on its website. Launched in 2022, it now features more than 320 brands.
“Despite the significant increase in customers returning to stores, the group’s online business grew by 2.2% to account for almost a third of revenue, up from less than a quarter before the pandemic,” Neil added.
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