The use of mobile – both in store and amongst its customers – has helped Holland & Barratt grow group revenues by 7.1% to £702.5 million in 2018.
The growth comes on the back of strong like-for-like sales growth of 3.9%, 32.2% growth in digital sales, and new store space. In the UK and Ireland, Holland & Barrett grew its revenues 6.5% during FY18, grew like-for-like sales 3.9% and achieved 32.2% growth in digital sales. It added 34 new stores in the UK and Ireland during the year.
Technology is dramatically reshaping the retail landscape as consumers increasingly use mobile and other internet devices to communicate, learn, and transact. In FY18, Holland & Barrett began what will be a transformative journey to meet customers’ health and wellness needs in a digitally dominated future.
The health and wellbeing retailer initiated improvements to its capabilities across the business with this end in mind – technology, data, retail standards, merchandising, marketing and supply chain – developing an app that works for online and in-store experiences, as well as leveraging mobile social media interactivity through Twitter and Pinterest.
The retailer has experienced significant digital sales growth during the year of 32.2% as a result.
“Holland & Barrett delivered a strong financial performance in 2018 with positive revenue, like for like sales and EBITDA growth, underpinned by significant growth in digital revenues,” John Walden, Chairman, comments. “These results are particularly favourable against a backdrop of challenging and rapidly changing retail markets. As the newly appointed Chairman, I am looking forward to working with the talented Holland & Barrett team and developing an ambitious strategic plan - to build digital leadership and a global platform for delivering the most trusted, ethical health and wellness products and services.”
The retailer was recently acquired by L1 Retail and the figures indicate that transition is going smoothly. Other business highlights also include continued innovation including the launch of Healthbox subscription service and new product development which comprised 8% of Group revenues. There has also been a strong performance in several key categories with Vitamins, Minerals and Herbal Supplements (VMHS) in the UK and Ireland growing 15.3% and Clean Beauty growing 10.2%.
Holland & Barratt have also expanded globally, opening 66 new stores globally, including 15 new concession models within Tesco stores in the UK and Ireland. The continued international expansion has seen overseas revenues grow by 9.3%.
Image: InternetRetailing Media Services/Paul Skeldon