Bensons for Beds reports robust sales and profit uptick in a tough economic landscape
UK bed specialist Bensons for Beds has announced a return to profitability this year despite economic challenges and subdued consumer confidence.
According to the latest annual report, turnover for the 53-week period ending on 30 September 2023 rose by 7.5% to £257.5 million (2022: £239.4 million), with EBITDA profits reaching just over £1.5 million (2022: a £15.4 million loss).
This financial rebound is attributed to a strategic recovery plan initiated in 2022, which has also stabilized the business.
Bensons’ strategic report highlighted: “In retail, it’s crucial to focus on the KPIs within your control. Despite weak market demand, the Bensons team concentrated on sales conversion and Average Transaction Value to optimize available demand and deliver superior customer service both pre- and post-sale. This approach drove significant improvements in key performance indicators, culminating in the robust revenue growth and profitability detailed in the subsequent financial summaries.”
Key achievements for Bensons over the past year include:
• Increased market share in core product areas.
• Investment in omnichannel and digital strategies leading to a 22% increase in like-for-like digital sales. The “Bedheads” community now comprises 277,000 members, enhancing customer engagement and marketing.
• Expanded retail presence with 14 new store openings, including re-entries in Peterborough and Speke and new locations in Edinburgh Craigleith and Edrington.
• Enhanced Net Promoter Scores (NPS) by 15% after significant improvements in customer service and delivery experiences.
• Strengthened market positioning across various product tiers, supported by the repositioning and relaunch of several ranges.
• Successful acquisition and integration of eveSleep.co.uk in October 2022, with the brand demonstrating robust growth and positive EBITDA post-relaunch.
• Enhanced employee support through benefits and programs, including a Winter support package, early implementation of the National Living Wage increase, and a 5% salary rise for most roles.
• Reinforced its leadership team with strategic appointments like Linda Sleath as Chief People Officer.
Nick Collard, CEO of Bensons for Beds, commented: “Now five months into the new fiscal year and facing ongoing market challenges, we maintain our momentum and align with our forecasts. Looking ahead, we’ll concentrate on controllable elements such as store expansion, staff training, product innovation, and digital enhancements.”
