Søstrene Grene had its most successful financial year to date, as it ploughs on with its rapid UK expansion.
The Danish retailer, which now has over 25 UK stores and is on track to open 100 UK stores by 2030, saw pre-tax profits rise 15% to £24m for the year ended April, driven by strategic investments and growing demand for its products
Sales shot up 22% to £247m, despite the group referencing a “broader economic challenges”.
Søstrene Grene CEO and co-owner Mikkel Grene said: “This performance validates the strategic decisions we have made to innovate and expand our business. The results clearly demonstrate the effectiveness of our investments.”
Despite the strong performance, it expects margins to take a hit this year as it absorbs rising freight costs to keep prices low.
Grene said: “While increased freight costs are a challenge, we remain focused on keeping our products affordable. We expect some impact on margins this year, but we are confident in achieving even stronger results next year.”
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The retailer said its results provided a “strong foundation” for its future plans, with the chain allocating £11m to projects including SAP system implementation, warehouse automation through robotics, and enhancing digital and marketing capabilities.
“We are not only expanding our physical presence but also investing in technology to enhance efficiency and the customer experience. These investments are crucial as we position ourselves for sustained growth in the coming years,” Grene said.
Søstrene Grene will open 60 new stores globally by the end of 2024 as it targets 500 shops by 2027.
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