Theo Paphitis Retail Group; Christmas & Financial Year End 2016 Trading Statement. Highlights Christmas 2016
Positive like for like sales and gross profits delivered by the Theo Paphitis Retail Group for Christmas 2016 trading period, being 6 weeks to 24 December.
• Boux Avenue currently with 28 stores in the UK, saw like for like increase in sales of 16.6%, accelerating growthfrom 8.9% last year.
• Ryman which has 216 stores nationwide registered a like for like increase in sales of 1.4%.Recently acquired London Graphic Centre also showing growth of 8% on last year for the same period.
• Robert Dyas with 95 stores mainly in the south, saw like for like sales increase by 2.0%.
Theo Paphitis comment
“Firstly, I am delighted that each of our individual brands and the group as a whole were able to deliver growth in like for like sales at this crucial time for retail. Once again, we observed the further shift of our customers to purchasing online with growth in this channel across the group being over 50% ahead of last year. Like last year, we saw multiple peaks, with Black Friday being a key event in the UK retail calendar. Retail is facing many challenges, particularly with a decline in footfall on many high streets, but at the same time we see opportunities that come with the continued development of technology that makes shopping as convenient for customers as it has ever been. We will continue to invest in this area to ensure that our much loved brands interact with customers in ways that suits them best.
I have never known a more dynamic time for retail. Working with heritage brands, Ryman and Robert Dyas that have both been around for over a century, the pace of change is more challenging and opportunistic than ever. Having started the Boux Avenue business only 5 years ago, even in this relatively short space of retail history, we have seen our business plan adjusted to take into account the momentous changes in shoppers’ habits.
Retail, especially within bricks and mortar in the UK, is facing the perfect storm. As mentioned above, changes in consumer habits, the impact of the weaker pound against the dollar and euro, coupled with increasing labour costs, the apprenticeship levy and the sucker punch in the lack of an honest and equitable reform of what is an archaic system of business rates.
With regard to the so-called recent business rates reform, retail has changed dramatically over the years but is faced with a tax that was introduced in a different world. The facts are that footfall and activity on our high streets and town centres are in decline but businesses like ours are about to see an overall increase instead of a decrease in their rates bill in the next 12 months.
We have invested significantly in the last 2 years building and modernising our infrastructure, in particular commissioning a new warehouse and distribution facility in Hemel Hempstead and new websites for Ryman and Robert Dyas to meet the changing needs of today’s consumer. Boux Avenue will be moving to a new e-commerce platform this quarter.”
Financial Statements Year ended 26 March 2016: Highlights Last Financial Year End;
• Boux Avenue strong growth and development of the brand continues, delivering an improvement in financial performance for the year.
• Ryman delivered a solid performance with EBITDA of £9.6m (2015 £10.1m). Profit before tax up by 6.7%.
• EBITDA of £1.5m for Robert Dyas following significant disruption and change, resulting in a new management team and further investment in the year in developing the business including logistics and e-commerce infrastructure for future growth. This has helped deliver growth in the current year to date in e-commerce of over 46%.
Like for like sales level. EBITDA £9.6m from £10.1m in 2015.
Turnover decreased 2.5%, due to store closures at lease expiry, to £127.7m from £131.0m.
Growth recorded in ecommerce, in store services like DHL, printing and most recently a trial with Western Union and launch of B2B business.
Ryman has a nationwide network of 216 stores with over 120 years of retailing on the UK High Street.
Boux Avenue Limited
Boux Avenue's 5th full year of trading in the UK, growing to a total of 28 stores in the UK. The brand also has 14 franchise stores overseas.
Total UK sales increased by 21.5% from £36.5m to £44.4m, assisted by strong like for like sales of 13.4%; this building further on total growth of 35.5% and like for like growth of 18.9% in 2015. Gross profit margins also increased by 2.1% in the year and gross profit increased by £5.1m.
EBITDA loss reduced to £1.7m from £2.9m in 2015, in line with business plan.
The new financial year has seen further avenues for growth through the sale of Boux Avenue product on Asos.com, Very.co.uk, Littlewoods.co.uk and Lipsy.co.uk.
Focus has also been increased on developing international sales through our website bouxavenue.com, which will be assisted by new technology being introduced through our new platform, as well as continuing to develop our franchise business.
Turnover decreased 4.4% from £125.5m in 2015 to £120.0m, with like for like sales reducing by 4.7%.
Underlying EBITDA reduced from £7.0m in 2015 to £1.5m.
A challenging year with a change of management team, together with continuing investment in commissioning a new warehouse and logistics centre in Hemel Hempstead. Technology introduced simultaneously to enable future growth in e-commerce as well as stores. This unfortunately resulted in disruption to our supply chain and business in general, impacting our financial performance in the short term. The warehouse is now fully settled and costs running to expectations, helping drive strong growth in particularly e-commerce as seen over the Christmas trading period.
For further Ryman, Robert Dyas or Boux Avenue enquiries please contact:
Group Head of PR, Theo Paphitis Retail Group
(e) [email protected]
Ryman is famous for our customer service, and colleagues in our nationwide network are committed to delivering the best customer experience to everyone who visits our specialist stationery stores. We achieve this by hiring people who are passionate about retail and care about our customers, by providing comprehensive training and development programmes, and by recognising and rewarding great performance.
Listening to our customers & colleagues
We are always keen to hear about ways we can improve. That’s why we encourage all our customers – and employees – to come up with ideas on how we can do things better, and what new things we should be doing.
We hope you enjoy your online experience with Ryman.co.uk and if you have any questions, please contact Customer services.
Our Range of Services
As well as being the nation’s high street stationery specialist, many Ryman stores offer additional business services to customers. For example, our services include:
Copy & Print Services – All stores offer in-store print & copy services, and access to our in-house Print facilities to order a wide range of print products. Selected stores can print large format (posters, roller banners and window vinyls) and business cards in-store. All stores can order large format print for delivery.
Document Binding – All stores offer comb binding with selected stores also offering Wire, Click, Thermal & Hardback binding. Some stores produce hardback foiled student dissertations and theses. All stores can order dissertations and theses for delivery.
Laminating – All stores offer Laminating in store up to A3 size.
Fax service – All stores offer an international faxing service
Scanning – All stores offer a scanning service up to A3 size. Selected stores can also scan to email.
Photo booth – Selected stores have a photo booth in store to take your I.D photo’s.
Western Union Money Transfer – We also offer Western Union money transfer services in a selection of stores, allowing customers to send money across the globe in minutes.
For more information about our Business Services please visit SERVICES
All stores allow customers to order products for home delivery, which is particularly useful in the case of purchasing heavy items like chairs, desks, filing cabinets and the like. Just ask about this at any Ryman till.
We have been working with DHL since 2010, and have a DHL Service Point at many stores, in order to offer customers a courier service allowing customers to send parcels securely around the world or within the UK.
There are six Ryman stores that also have a Post Office.
We offer a 12.5% discount for NUS Extra members. All you need to do is enter your card number in the online shopping basket page or show your card in store. Students who are not NUS Extra discounts, can still receive 10% discount in store by showing their student ID.
We make sure the company’s investment in training ensures that our colleagues in the stores have an in-depth knowledge of their product range.
We offer special pre-paid gift cards at various prices, allowing your friends and family to choose their own gifts!
Sponsorship and Fundraising
Ryman has a great track record in supporting good causes and has raised £2.5m for Comic Relief/ Sport Relief! Employee fundraising is encouraged at all levels.
We are also proud sponsors of the Isthmian Football League, called the Ryman League. The clubs have been highly supportive of the company’s charity fundraising, including playing with red footballs in support of the Red Nose Day and
INVESTING IN OUR PEOPLE
Our Chairman, Theo Paphitis, believes that the most important people in our business are our colleagues who serve our customers. Theo emphasises that people should look forward to coming to work and feel valued and listened to. He is a strong advocate of investing in colleague training, development and apprenticeships.
Colleague Training and Development
We believe in training and developing our colleagues to empower them to fulfil their potential. Our extensive training programmes include a comprehensive induction programme to welcome new colleagues into the Ryman family, customer service, product knowledge and sales training, and a first class management development programme. We pride ourselves on promoting from within and retaining our best people, giving colleagues the resources to help them shine and progress.
We offer Apprenticeships at Level 2 in Retail Skills and at Level 3 in Management. Both programmes provide an externally recognised qualification and are supported by our in house Learning and Development Department and our external training partner, Fareport Training. We’re very proud that our Apprenticeship Programme was Highly Commended in the 2016 National Apprenticeships Awards.
Recognition and Reward
All our colleagues participate in incentive schemes which allow them to share in the success of our business, and our development programmes encourage people to stay with us and build a career. In addition we offer an amazing colleague discount scheme across all Theo’s retail businesses.
A Great Place to Work
We’re proud that our colleagues stay with us for a long time –something that is very unusual within the competitive retail industry. We believe that this, and colleague engagement of 79%, is a sign that our colleagues enjoy working here and feel that we recognise their contribution and support their development.
Product quality is important to Ryman and the company makes sure that all suppliers comply with the code of ethical trading (The Ethical Trading Initiative Base Code) and continues to monitor these standards on a regular basis. Like all forward-thinking companies, Ryman aims to minimise its carbon emissions and has put plans in place to achieve this important aim. (Please see Ryman and the Environment)