Independent retailer delivers strong results despite demand decline

Independent furniture retailer Hatfields has reported another growth in turnover.

According to its latest filed accounts for the year ended 31 March 2023, total sales rose to £6.8m from £6.7m in 2022, further adding to its growth of 51% from £4.4m in 2021.

Pre-tax profit resulted at £329,000, slightly down from £365,000 recorded the previous year.

Stated within its report, the company said that big ticket and luxury items such as home furnishings have seen a “sharp decline” in consumer activity due to the ongoing cost-of-living crisis.

“Lead times are improving as demand declines and order books shrink, however there remans a shortage of raw materials in many products and with the increased costs of labour and transport that suppliers are seeing, prices have increased,” Hatfields said.

“It is however pleasing to report that gross profit margin increased to 45.6% (43.7% in 2022), with turnover increasing by just under 1%. Due to the timing of when sales are recognised in the accounts, an element of this comes from the post Covid bounce, which unfortunately we will not benefit from in the year ended March 2024, which is excepted to be a very challenging year.”

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