Mountain Warehouse is set to open another 50 stores next year as part of a rapid expansion plan after achieving a bumper profit last year.
The new stores will take the outdoor leisure retailer’s total to around 370 stores across nine countries, according to the Times. It has already opened 20 new stores in the past six months alone.
The company, which employs around 3,700 people across the UK, reported a record revenue of £386m and pre-tax profit of £26.2m in the year to February 2024. It previously made a loss of £1.4m.
It suffered during the inflationary crisis in 2022 when soaring freight and energy costs ate into its margins and left it with a loss, but still reported record sales in 2022 as customers returned to in-store shopping.
‘Life left’ in the UK’s high street – Mountain Warehouse boss
Just over two thirds of Mountain Warehouse’s sales are over-the-counter, with the rest through its online e-commerce operation, which it rapidly grew during the pandemic to offer a wider range of products.
Sales at its stores grew by 7.1 per cent in the year to February.
Mountain Warehouse founder and CEO Mark Neal told the Times: “We think there is lots of life left in lots of our high streets.
“All that death of the high street stuff has been a bit overdone. We’re definitely very positive about physical retail at the moment.”
It’s another sign of retailers are increasingly betting on the high street and shopping centres to boost sales.
Companies have been investing in their omnichannel offering, rather than just online, as they look to boost in-store experience with personalisation, events and product curation.
The data doesn’t yet support the bet – retail footfall fell for a twelfth consecutive month in August as shoppers opted to spend on holidays and leisure rather than consumer goods – but analysts expert that to change as Brits become more confident in the economy.
City A.M. has approached Mountain Warehouse for comment.