Home Retail Planet Organic sets new store estate target despite losses | News

Planet Organic sets new store estate target despite losses | News

by Ozva Admin

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Planet OrganicThe full year loss has been widened from £2.5m in 2020 to £3.4m in 2021 due to COVID-19 challenges

The company credited “external factors” such as the domino effect of store closures during the pandemic, the supply chain crisis and lower consumer confidence and spending, with the growing loss.

Planet Organic’s EBITDA was -1.4 million pounds sterling, compared to -924,000 pounds sterling in 2020. The group’s revenue was also down 7.6% to 37.6 million pounds in 2021, on compared to £40.7 million a year earlier.

Chairman Ben Thomson said the comparison was affected by the acquisition of the subsidiary As Nature Intended, as well as the temporary and permanent closure of five stores during the period due to Covid.

Despite widening losses and negative pre-tax earnings growth, the company has set an “ambitious” new equity expansion target: Planet Organic now aims to open 100 new stores across the UK over the next few years. next three years, double what was established in the original. plan to become a chain of 50 stores by 2025.

To support the rollout of the new branches, it is currently seeking to raise £30m in funding over the next two years.

“It’s an ambitious program, but we believe the opportunities in this changing market are where we can achieve this launch of our most profitable store model in the locations we want and at affordable rents,” said Thomson.

Planet Organic is currently in the midst of a revamp plan, spearheaded by new CEO George Dymond, which includes major changes to its store ownership strategy.

Its focus was now on predominantly residential areas with a high density of Planet Organic customers, it said, which is why it decided to close all but one of its West End and City stores in London, and instead open new sites in Hampstead, Bermondsey. . and Hackney.

Thomson said: “We see this change as an opportunity to move the business into residential communities which we believe will have a greater resilience in supermarkets if there is a downturn.”

The specialist organic retailer currently has 13 stores in the capital and plans to open a new location in Henley-on-Thames in the autumn.

Read more: Planet Organic to open its first store outside of London

“It’s a scary and exciting time to be in retail,” Thomson added. “The threats are very real, but so are the opportunities. We believe that with the new structure led by George Dymond, now is the time to be at the forefront of building a 100+ store business equal in size to major chain stores. Health food chains in France and Germany”.

Dymond has led the new strategy since being appointed to the top job in December 2021. He succeeded Peter Marsh, who had been CEO for 13 years.

Since then, Planet Organic has focused on growing its online operations, which it said had continued to expand “in terms of sales and reach” through its own delivery model, as well as a partnership with Deliveroo offering on-demand groceries in London.

Furthermore, the retailer moved to a centralized distribution model for the first time this year as part of its supply chain renewal program. Howard Tenens will handle deliveries from the new Sunbury-on-Thames distribution center Logisticsthe grocery store’s main outside supplier, as well as one of its shareholders.

In the months after the new chief executive was appointed, the group also restructured its senior management team to “bring the experience needed to drive business growth,” it said, with six new directors from Digital, Human Resources, Purchasing, Supply, Marketing and Property.

One of Planet Organic’s longest-standing buyers, Al Overton, recently left the business. He initially stepped down as director at the end of March 2022. The previous chief operating officer, Caroline Ottoy, was appointed director in October 2021 and resigned from that role six months later.

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