Discount department store retailer The Original Factory Shop has reported a decline in sales as well as a loss.

According to its latest filed accounts for the year ended 26 March 2023, total sales fell 4.5% to £118.7m from £124.4m in 2022.

EBITDA stood at £4.6m, down from £8.5m, while pre-tax losses resulted at £1.7m, down from its profit of £1.4m the previous year.

Stated within its report, the company said: “The retail sector has faced significant challenges in the past year as a result of the cost-of-living crisis and the company has not been immune to the effects of this on both consumer sentiment and increasing overhead costs.

“The company took the decision to invest in a third-party model to indemnify new store opportunities which best matched our proposition and target markets. This investment is bearing fruit as more high-quality sites have become available and we opened 10 sites in strong locations during the year.”

The business also closed three unprofitable stores during the period, as well as opening two in partnership with the Co-Op following the success of opening 17 Co-Op stores the previous year.