Seasalt says it will continue to invest in digital transformation and international expansion as it reports double digit sales growth over the Christmas period.
Sales at the Cornish clothing brand grew by 15% across its sales channels in the five weeks to December 31 2022, compared to the same time last year.
Store revenues grew by 24% during the period, while online sales were 2% down on last year’s record sales. Looking ahead, the retailer expects that its online sales will be affected by wider economic uncertainty in 2023. However its sales via marketplace partners including M&S and Next were 57% ahead of last year over the same period.
On a like-for-like basis, which strips out the effect of store – and business – openings and closures, store sales were 12% ahead of pre-pandemic 2019. Ecommerce sales grew over the full-year but were, says Seasalt, “significantly more impacted by the cost-of-living crisis than physical stores” with increasingly challenging online trading conditions in the second half of the year.
In 2023 it will expand its menswear range and will continue to invest online and in international sales.
Malcolm Macdonald, Seasalt chief financial officer, says: “Our strong store performance over Christmas is a continuation of the success we have enjoyed all year. We have always believed that success in retail requires a balance between the store and online channels and the ability to provide a great customer experience in both. Our recent sales performance indicates that this is still a priority for our customers.
“Although we have traded very well during the last 12 months, we expect the next six months to be tough. We will continue to invest in our planned digital transformation and in expanding our international presence but will otherwise be taking all necessary actions to manage our costs very carefully to ensure we are in the best possible position to accelerate our growth again later in 2023 when consumer confidence improves.”
Seasalt sells online to 156 countries, through 69 stores in the UK and Ireland and through strategic marketplace partners including M&S, Next and Zalando. Seasalt was founded by Don Chadwick in Penzance in 1981, and it continues to be owned by the Chadwick family.
Seasalt is ranked Top250 in RXUK Top500 research.
