Lakeland profits fall by a third

LAKELAND, the family-owned kitchen and homewares retailer has reported a fall in sales, but says it will continue to open new stores despite the tough trading landscape.

The Windermere-based group, run by three brothers, Sam, Julian and Martin Rayner, saw profits for 2011 fall from £10.7m to  £7.2m.

Despite the 33% slump in profits the 59-store group grew sales 2.3% to £151.4m, as new stores were added.

Like many other retailers confronted with low growth prospects in the domestic market Lakeland has cast its net wider and opened seven franchised stores in the Middle East and has three more openings planned in the future.

The group stocks 4,000 products, including baking equipment, cookware, kitchen utensils, knives, scissors, food storage, kitchen cleaning products, kitchen electricals, tableware, and cleaning products.

In its business review for 2011 the group said: “Despite the difficult economic climate the directors are confident about the prospects for 2012 with further UK store growth planned.

“Uncertainties still remain with regards to the UK economy and how this will impact the retail sector.

“However, the directors believe that growth opportunities exist and the business is well placed, with a strong balance sheet, to capitalise on these opportunities.”