Mountain Warehouse has promised to open 50 new stores – a win for Britain’s high streets and retail parks amid the recent wave of store closures.
This is a result of the return to profitability and another sign that the country’s economy is on the road to recovery.
According to the retail group, it has opened 20 stores in the past six months and has a “strong” pipeline of new locations scheduled for opening.
In its latest financial results, Mountain Warehouse returned to profit in the year to February 2024 as more consumers returned to stores.
The company reported a pre-tax profit of £26.2 million for the year, a significant increase from a loss of £1.5 million the previous year.
According to Mountain Warehouse, which employs around 3,700 people, the company benefited from record sales over the past 12 months.
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Britain’s high streets have recently seen a wave of store closures P.A.Overall, revenues rose four percent to £386 million during the period, driven by a 7.1 percent improvement in store sales.
Last year, Mountain Warehouse opened and relocated 28 new stores as part of a larger expansion plan.
Mark Neale, founder and CEO of the company, said that after this period of positive sales, opening more stores is a sure thing for the company’s future.
He said: “We are successful with our new, larger stores and are therefore looking for more locations of this type,” he said.
“Rents have become more affordable, so we are now targeting new businesses that we might not have considered before.
“We had really good access to some attractive retail parks and high street locations. We were able to open in 10 former Arcadia stores and some former Wilko stores.
“In the UK we see the potential for 50 new sites, but we are constantly reassessing the market and will also consider relocations.”
One of the factors that contributed to Mountain Warehouse’s success was international growth.
The retailer has moved into former Wilko premises
P.A.
Last year, the company opened its first office in Australia and additional locations in New Zealand and Canada.
Neale said the company had also benefited from acquiring the Animal brand and opening a number of standalone Animal stores.
The CEO added: “It has helped us weatherize the business, something we have paid a lot of attention to over the past few years to keep our business running well all year round.”
“The acquisition of Animal also allowed us to reach many new customers. The brand is very popular and we are revitalizing it for a new generation.”
