Online retailer returns to profit after £3m investment in new warehouse HQ
Furniturebox has returned to profit with a 20% surge in sales.
The online retailer made a £612,288 profit in 2024, following a £1m loss the previous year, with the company attributing the tunraround to a £3m investment in its new warehouse headquarters.
Sales increased by 20.6% from £21.3m in 2023 to £25.6m last year.
Turnover in the United States almost tripled to £6m – with more than 100 products launched and reach expanded through Amazon US, and European sales outside the UK doubled.
Revealing results for the 2023-24 financial year ending on July 31 2024, co-owners Monty George and Dan Beckles, both aged 27, said US expansion drove growth across all sectors, despite a “complex” domestic environment hit by “persistent cost of living concerns”.
George said: “We are delighted to have returned to profit with a big jump in sales in what has been a really tough market for everyone in the interiors market.
“Our first loss the previous year was due to the major investment in our new warehouse headquarters which has brought huge efficiency savings and allows us to deliver more quickly than our competitors.
“This was part of a long-term strategy which is really paying dividends with a strong new management team in place, all committed to sustainable growth here and in the US and throughout the rest of Europe.”
In a strategic report accompanying the results, George and Beckles said their core growth strategy remains on track and they were confident of ‘accelerated momentum’ in the current financial year, despite mixed signals in the market.
The report said that new challenges including conflicts in the Middle East had led to shipping delays and rising costs, putting pressure on margins.
But the business had still managed to increase margins due to its strong supplier relationships and proactive planning.
Furniturebox has made sustainability a big priority with a ‘no plastic’ first approach which has seen a significant reduction in plastic usage and greater use of recycled material.
More than 90 new products were launched and costs were managed with technology advancements including adopting AI-driven tools.
The move to the new 88,000 sq metre warehouse HQ next to the M4 at Indurent Park near Chippenham means Furniturebox can deliver for free throughout the UK the next day on most orders placed 8pm the previous night – among the very fastest delivery times online and a match for global brands with their own delivery teams.
