The Original Factory Shop has reported a strong performance in its latest full-year accounts, with EBITDA of £8.5m, compared with £2.4m in the previous 12 months.
The performance in the 12 months to 27 March 2022 was also up on two years prior, when the retailer’s EBITDA was £5.5m.
The variety discounter, which sells a wide range of branded and own-label products across fmcg, general merchandise and clothing, saw operating profit of £3.7m in the latest period, compared with an £8.7m loss the year before.
Total revenue was £124.4m, up from £92.1m, reflecting a full year of trading compared with a lockdown-affected previous year when all stores were closed in the first quarter.
The business opened 17 concessions in Co-op and three new standalone stores, creating about 190 jobs. However, it also closed six sites in unprofitable locations as leases ended. The estate stood at 180 stores at the end of the period.
The Co-op concessions, which sell clothing, pet, electrical and homeware ranges and offer click & collect, are typically about 2,300 sq ft and create 10 jobs.
TOFS said it had also introduced a more agile buying strategy during the period, by not forward committing to products up to six months in advance, allowing the team to “buy in the moment”.
Earlier this year it launched its first loyalty app, called TOFS Club+, with rewards aimed at driving footfall in stores.
TOFS MD Phil Briggs said: “We’ve used the last few years as an opportunity to transform The Original Factory Shop into a more agile and reactive business which continues to put the local community at the heart of everything we do, from our marketing and buying strategy to our charity partnerships.
“The progress we’ve made is reflected in the strong results this year and are testament to the hard work that our team and suppliers have continued to deliver.
“The continued investment we’ve made in our new TOFS Club+ app, the 20 new store launches and our strategy of focusing on the heart of local communities is an important combination, and it means we can bring even more savings and discounts to our customers as they begin to face unprecedented increases to the cost of living.”
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