online 1

Online marketplace sales fall 32%; implements restructuring

Online marketplace Not On The High Street has reported a decline in sales as well as falling into the red.

According to its latest filed accounts for the year ended 31 March 2022, total sales, from the commission of sold goods, fell 32% to £39.1m from £57.8m in 2021. Pre-tax losses resulted at £4.2m, significantly down from a profit of £10.1m recorded the previous year.

Total transaction value declined 33% from £230.2m to £153.1m year-on-year.

Stated within its report, the company said that the first quarter benefitted from increase consumer demand for online shopping as a result from the extended Covid lockdown. Performance then continued to improve over the winter peak season, aided by optimisations on the platform.

However, the war in Ukraine, inflation and cost of living impact, resulted in a tightening of consumer spending, which forced performance to dip below FY21 levels.

The company has continued to invest in both marketing and technology ahead of its brand relaunch, which took place in September 2022. This investment impacted its bottom line.

Furthermore, in January 2023, a restructuring programme commenced to reduce operating costs including headcount – at the time of the report the company had 212 staff. The restructuring is expecting to conclude this month with the business “confident the necessary restructuring will position the business well to reduce cost case overall and focus on revenue and profit growth in the future”.

Save this article for later

You can revisit this article if you save it as favourite news!

Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on telegram
Share on email

Leave a Comment

have you read…

related articles