Hobbycraft full year sales up 12% as business change programme gathers pace
Arts and craft retailer Hobbycraft said its sales increased to record levels in the year to 24 February 2013, as turnover rose to £119.1 million from £106.5 million in the previous year.
However, EBITDA dropped from £15.6 million to £13.5 million after the retailer invested in transforming its infrastructure in order to capitalise on future growth opportunities arising from more frequent product refreshes, direct importing and on-line sales and engagement.
Hobbycraft grew its store estate to 75 shops with 14 new openings in the year. In addition, four existing stores were refurbished into the New Hobbycraft format as retailer looked to broaden its customer base from individual crafters to include other groups such as mothers who craft with their children and lighter users of craft products.
Chief executive Catriona Marshall said: “We’re into the second year of the planned three year change programme and it is now beginning to pay off with improvements coming through in virtually every part of the business. We’ve invested heavily, opened new stores, re-engineered our retail and supply chain systems and consolidated our distribution centre facilities into a new, purpose built single site in Burton-on-Trent, double the size of its predecessor’s.
“In 2013, we also launched a new website as part of a more integrated online presence that will allow us to strengthen customer relationships as well as our product offering. All of this has been backed by a programme of service initiatives and training for colleagues. We have also increased our central resources team with senior hires in supply chain, customer development and finance.”
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