Thorntons retail strategy working
Chocolate brand sees sales rise
September 11 2002
Confectonery manufacturer Thorntons saw a like-for-like sales increase of 3.6 per cent in company owned stores in the year to the end of June.
The first full year increase in three years is evidence of the success of a strategy designed to restore the company’s fortunes. Total profit increased by 16.4 per cent, and own shop like-for-like sales in nine weeks since the end of June are up 6.8 per cent.
The company has pulled back from a full store refurbishment programme, instead taking lesson learned from nine trial store launched a year ago and including the successful elements in its 395 existing outlets. The company has also identified potential for improvement to its Cafe Thorntons outlets, and plans to double the number from the current 25 over the next three years.
Thee are also plans to expand the Thorntons Pure Indulgence impulse product range, which has had a successful launch in Tesco stores and will be rolled out to other retailers.
Peter Burdon, Chief Executive, said: “Two years ago we promised that we would restore the company to a healthy earnings growth rate, to be delivered over a three year period. We are firmly on track with that plan, with the final year of the turnaround having started strongly. We have set in motion a number of growth initiatives, that are already starting to deliver but require further work, time and some investment to realise their full potential. Whilst these initiatives form the backbone of our refreshed strategic agenda, it is also undoubtedly true that we have other attractive product and distribution opportunities to maximise the potential of the Thornton brand.”
