The Fragrance Shop has warned it might be pressured to shut some of its shops after the Covid-19 pandemic “accelerated the transition” to online shopping, “severely weakening” footfall. The Manchester-headquartered retailer issued the replace in its accounts for the 12 months to March 31, 2020, which have been revealed 15 months after the tip of its monetary 12 months. The paperwork, which had been signed off by the board on June 15 and solely made accessible to the general public on Companies House on June 29, present its turnover decreased from £113.9m to £88.4m within the interval. However, its pre-tax earnings elevated from £3.7m to £4.2m. On how the final 15 months has impacted the enterprise, a press release signed off by the board stated: “Trading efficiency in bodily store areas [was] considerably impacted within the first quarter of the brand new monetary 12 months given [the] blanket closure and subsequently by way of weakened footfall to all retail locations.
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“Government help has enabled the corporate to retain its staff and assist offset some of the store losses. “Given the multichannel nature of the broader group, the success to date of online operations has helped offset and mitigate the losses incurred from the bodily operations and as a end result the group is nicely positioned to navigate the challenges and future uncertainty that this virus presents.” On the 12 months to March 31, 2020, the enterprise added: “The administrators are glad with the efficiency of the corporate. “During the interval, the corporate has opened 5 new shops, working from an property of 198 shops and online on the interval finish.
“The administrators anticipate the UK retail surroundings to stay aggressive; the pandemic has accelerated the transition to online shopping, severely weakening footfall to bodily retail locations. “This presents challenges to the continuing viability of sure shops nonetheless the corporate will look to optimise its portfolio in mild of market circumstances wherever attainable going forwards.”