Discount retailer The Original Factory Shop has seen its profits shoot up by more than 250% as consumers benefitted from cut-price brands and local shopping enjoyed a post-pandemic resurgence.
The group – which has about 180 stores across the UK and sells brands such as Molton Brown, Russell Hobbs, Nike and Adidas at discounted prices – reported a surge in its profits and revenue in the year to March 27.
It said its profits before tax and interest hit £8.5 million, up from £2.4 million in the previous year as the group opened new shops in communities across the country.
Total revenues also reached £124.4 million, jumping more than £30 million from the prior year when all its stores were closed in the first three months of the year during the national lockdown, the retailer reported.
We can bring even more savings and discounts to our customers as they begin to face unprecedented increases to the cost of living
Phil Briggs, managing director of The Original Factory Shop
The Original Factory Shop reported record sales across its gardening ranges amid soaring temperatures during the summer months.
The retailer, which sells everyday favourite products from £1, said that cash-conscious consumers experiencing rising living costs have been able to benefit from cheaper prices at local stores.
Phil Briggs, managing director of The Original Factory Shop said: “The continued investment we’ve made in our new Club+ app, the 20 new store launches and our strategy of focusing on the heart of local communities is an important combination, and it means we can bring even more savings and discounts to our customers as they begin to face unprecedented increases to the cost of living.”
The group announced a tie-up with convenience chain Co-op last year to sell its discounted items at a number of shops. It opened 17 Co-op concessions and three standalone stores over the past year, creating almost 190 jobs, the retailer said.
It also said that the business has developed a more flexible buying process that means it can order stock quickly in reaction to consumer demand.
In June, reports claimed the retailer was exploring a sale after receiving a number of takeover approaches, according to Sky News.
The group has been owned by private equity firm Duke Street since 2007 which said the stores benefit from being located in small market towns rather than urban high streets or out-of-town shopping centres.
The business closed 54 stores in 2018 and since then has strengthened its management team and implemented a turnaround plan, Duke Street added.