Toy retailer Hamleys is hoping a new digital strategy will help turn around its falling sales after closing 40 loss-making stores last year.
The brand’s holding company has reported a revenue of £51.4m for 2023, according to newly-filed accounts with Companies House, down from the £56.6m it posted for 2022.
Over the same period, its pre-tax profit rose from £293,000 to £673,000.
Hamleys’ UK revenue fell from £50.7m to £43.9m in the year and from £604,000 to £166,000 in Europe. However, its sales rose from £5.3m to £7.3m in the rest of the world.
At the end of 2023, Hamleys operated 194 stores comprising 11 proprietary shops and 183 franchised locations.
As a result of the store closures, the number of people the company employed during 2023 decreased from 476 to 435.
Hamleys of London‘s revenue also fell from £50.8m to £46.3m while its pre-tax loss was cut from £5.3m to £3.4m.
The results for Hamleys Franchising show its revenue fell from £8.2m to £7.4m and its pre-tax profit was cut from £5.7m to £4.4m.
UK ‘remains challenging’ for retailers – Hamleys
A statement signed off by the board said: “The UK retail market remains challenging going into 2024 as consumer spending continues to be impacted by inflationary pressures.
“As a result, we remain cautiously optimistic on business growth with a continuous focus on cost optimisation to ensure the profitability of the group.
“The group is continuously striving to improve the customer experience and proposition across all formats to ensure long-term sustainability of the business.
“We remain focused on identifying opportunities for future growth and implementing a robust digital strategy is a key growth drive for the UK in 2024.”
Hamleys added that the strategic review it undertook “delivered positive results” for the group.
Listed in the Guinness Book of Records as the world’s oldest toy store, Hamleys was founded in London in 1760.
Since 2018 it has been owned by its Indian business partner, Reliance Industries, following a deal worth nearly £70m.