Holland & Barrett has increased sales by £81m as more customers headed into its stores, however, losses deepened due to the ongoing investment in its turnaround efforts.
For the year ended 30 September 2023, pre-tax losses widened from £59.6m to £65.3m as it invested approximately £70m into its stores, technology, and new product development. The health and wellness retailer renovated hundreds of shops to revive its fortunes after a debt buyout by owner LetterOne in November 2022.
The revamp, including the overhaul of its food offer, helped drive footfall into store and drove a 11% sales jump to £806m, with UK sales rising 11% to £565m.
Despite the losses, executive chairman Alex Gourlay said the retailer was in a “strong financial position”, with the strategic investments of the past year showing “clear benefits”.
He said: “There has been a clear shift in recent years in public perception of health and wellness, with focus shifting to preventive rather than reactive care, and people increasingly wanting to own and manage their individual health.
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“To meet this shift, we are transforming the Holland & Barrett business: to deliver health and wellness that is easily accessible to customers in the UK and in our core international markets.
“We are moving to a clearly defined, mission-led approach to wellness, ranging from gut and women’s health to joint care, cognitive function and weight management, supported by qualified and personalised advice to customers, and science-backed solutions that help people’s short, medium and long-term health and wellness needs.”
Holland & Barrett revealed yesterday that it has partnered with Next to open new “store within a store” concessions this summer. It will open inside three of Next’s stores, including its Martlesham Heath Ipswich shop from today (10 July).
The new openings form part of Holland & Barrett’s £70m investment into its retail stores and upgrading the store experience. It plans to invest in at least one store a day in its refresh and refurbishment programme across the UK and Ireland over the next two years.
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