The Cotswold Company experiences sales growth despite a slowdown in the home and furniture market
Source:Mintel10-09-2024
UK 10-09-2024
For the six months to 25 August 2024, The Cotswold Company posted a 15% year-on-year increase in sales to £40.1 million, an 80% rise over five years. Active customers grew by 21% year-on-year, while multichannel customers increased by 49%. Gross margin also rose, driven by long-term investments made in its brand and the optimisation of its supply chain.
Chief executive Ralph Tucker said: “This gives us fantastic momentum as we head into the busy Christmas period, which will be enhanced by several exciting new product launches, the opening of new showrooms and a brand refresh supported by a nationwide TV advertising campaign launching in the autumn to introduce even more customers to the joys of our timeless and high-quality, made-to-last furniture and homeware.”
Mintel comment:
“A good set of results from Cotswold, especially given the subdued performance of the furniture market. The retailer benefits from a customer profile of mostly affluent, middle-class consumers, who have primarily driven engagement with the furniture market as well as the shift to bigger-basket spending within this category (see: Furniture Retailing - UK, 2024).
Recent investments in its store estates, including the introduction of Upholstery Hubs for customisation, have also paid off. Indeed, in-store shoppers (57%) are significantly more likely than those who buy online to spend at least £500 on furniture over the past year, an increase from 51% in 2023. The bigger-ticket nature of many furniture purchases, along with the rise of cautious spending due to financial pressures, necessitates additional reassurance before purchase to ensure their investment is worthwhile.
The strong performance is also attributed to investments in geo-targeted digital marketing, which will likely be further enhanced by the launch of a nationwide TV advertising campaign this autumn.”
