One Stop has reported a 10.7% drop in pre-tax profits.
According to its latest results at Companies House, they fell to £24.7m for year ending 27 February 2021, down from £27.6m in the previous 12 months.
However, revenue jumped 4.1% to £1.2bn, while it enjoyed a 15.5% growth in like-for-like sales.
The Tesco-owned retailer said this was despite the business experiencing the “full-year effect” of total store numbers dropping from 772 in 2019 to 697 last year.
As of February, store numbers were back in growth across its company-owned estate at 701 sites. However, the directors said they did not expect this to change significantly throughout the next financial period.
“Despite challenging stock availability in the first quarter along with extra costs incurred in protecting our customers and colleagues, the company continued to simplify its operations, allowing it to focus on serving local shoppers a little better every day,” the accounts added.
It also stated there were 207 independent stores operating as One Stop franchise, up from 191 in 2020. They delivered a 17.2% increase in operating profit to £3.4m. The franchise arm is set to increase to 280 stores by the end of its current financial year, the business told The Grocer.
“The directors remain committed to building a business that helps independent retailers grow their business and develop the franchise model to benefit the franchisees and the company,” the accounts added.
One Stop also continued to invest in the conditions of its stores, as well its ongoing maintenance programmes that prioritises customers’ health and safety and colleague security.
For example, it “promptly” introduced Covid-19 safety measures while investing in equipment to provide protection to both colleagues and customers. Free PPE was also given to franchisees, along with guidance and advice on how to ensure safety for all, it said.
“During a year impacted heavily by Covid-19, the company has ensured the safety and satisfaction of our customers and colleagues remains our foremost priority,” the accounts said.
The company completed the rollout of its new EPoS system as well, making it live in the remainder of the company-owned estate and all franchise stores.
The business also continued in its charitable efforts and donated £454,000 to the charities it supports, despite the pandemic meaning it was unable to take part in a normal level of fundraising. Its colleagues also volunteered more than 12,000 hours to local communities and, alongside customers, provided almost 70,000 meals through food bank donations.
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