Following at the moment’s launch of Lakeland’s figures for the yr ending 31st December 2023; Oliver Maddison, Retail Analyst at GlobalData, a number one information and analytics firm, provides his view: “Lakeland disenchanted in 2023, with an underperformance in H2 because of its failure to shift its emphasis from electricals to its cooking and baking vary, driving its revenues for the yr to fall by 0.6% and contributing to an working lack of £1.8m. This represents an underperformance relative to the general kitchen & eating market, which grew by 1.5% in 2023, in line with GlobalData, and reveals it to have been outclassed by rival ProCook, who managed to develop gross sales by 0.4% in its full yr to 31 March 2024, whereas delivering an underlying working revenue of £2.1m.
“While Lakeland’s Good Spend marketing campaign, which promoted energy-saving electricals resembling air fryers and heated airers, proved profitable in H1 as customers sought to economize on vitality prices, it failed to realize the identical cut-through in H2. The retailer highlighted a heatwave and the receding vitality disaster in Q3, alongside customers choosing an austere Christmas, limiting its gross sales of Christmas decorations in This fall as causes for its difficulties. This doesn’t reduce the mustard, nevertheless, however speaks to its Good Spend marketing campaign’s give attention to energy-saving electricals on the detriment of its cookware providing, in addition to customers specializing in low costs as they switched to discounters. ProCook’s golden quarter gross sales development of three.0% demonstrates that cookware was in demand in the course of the interval, as customers prioritised getting ready meals for Christmas Day over adorning their properties as they hosted meals at house as an alternative of consuming out.
“Regardless of its poor efficiency relative to opponents, Lakeland nonetheless has the potential to do effectively in its core cooking & baking sector, a reality recognised by John Lewis’ inclusion of Lakeland in its renewed By no means Knowingly Undersold worth matching pledge. To understand this potential, it should emphasise its cookware vary as a method of saving cash whereas customers proceed to get again on their toes within the wake of the shocks to their dwelling requirements. As soon as customers start to really feel the advantages of their wages as soon as once more outpacing inflation, it might subsequently emphasise each the standard and comfort of its product vary to retain these prospects.”
