Turnaround Plan Yielding Results At Holland & Barrett
Investment in its stores and product offer has helped drive up sales at Holland & Barrett by 10% in the second year of its turnaround strategy.
Over the 12 months to 30 September 2024, the health & wellness retailer saw its revenue increase from £806.1m to £884.5m after customer numbers rose by 9% to an all-time high.
Sales volumes across the group grew by 5%.
Gross profit improved from £475.7m to £524.2m after a £96.3m investment programme helped accelerate its digital transformation and overhaul its UK distribution centre and global production facility. Meanwhile, pre-tax losses narrowed to £61.8m from £73m.
Holland & Barrett’s ‘transformation strategy’ aims to meet the growing demand in the wellness and preventative health space.
In the year, it opened 36 new stores and overhauled 320 existing sites, launched new partnerships and concessions in the UK, Ireland, Netherlands and Belgium.
It also expanded its own-label range (+ 400 products, total to over 1,000 new lines in two years, including a revamped food range, which saw a 34% increase in sales in 2024.
Alex Gourlay, Executive Chair of Holland & Barrett, said: “This has been a landmark year for our business – one defined by purpose, transformation and a significant investment in the future of this 150-year-old business.
“With societal shifts towards prevention, testing and self-care, and insufficient public health care provision due to constraints on national health systems, there is an increasing unmet need which Holland & Barrett was well positioned to serve.
It is with great pride, that we have taken the bold steps necessary to meet the evolving needs of our customers, accelerating our transformation journey and laying a strong foundation for long-term growth.”
The company revealed that it has seen last year’s strong growth carry into the first half of its current financial year, with sales and gross profit both up 8% and customer numbers continuing to grow.
Gourlay added: “Our retail performance continues to outperform the UK and Netherlands high streets and compares strongly against other European countries. We are energised by the momentum we’ve built and excited for the opportunities ahead.”
Meanwhile, he told The Times that the use of weight-loss drugs such as Ozempic and Mounjaro is helping drive sales at Holland & Barrett. Gourlay revealed that the chain was “reformulating” its range to cater to customers using the appetite-suppressing treatments, which can see people switch to healthier options.
NamNews Implications:
* Customer numbers rose by 9% to an all-time high.
* Sales volumes across the group grew by 5%.
* i.e. real growth…
* Meanwhile, Holland & Barrett’s ‘transformation strategy’ aims to meet the growing demand in the wellness and preventative health space.
* i.e. If you want in, be seen to align with these aims…
* …and deliver real numbers.
* Simples!
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