Bargain Booze owner Conviviality Retail has announced a 1.3% decline in franchisee like-for-like retail sales, although revenue increased by 0.8% for the year to 1 May 2016.
Conviviality Retail reported a slowdown in its store closures to 34, almost half the previous year, while the number of stores increased by 15% to 716, with 38 new franchisees joining the group. The number of stores owned by multi-site franchisees increased by 42% to 364.
The decline in like-for-like sales also decelerated on the previous year (-1.7%), which reflected the “strategy to improve the quality of the estate and strengthen perceptions of the fascia and brands”, according to Diana Hunter, CEO of Conviviality plc.
Revenue for the 53-week period until 1 May increased by 0.8% to £366.9m, while EBITA rose by 0.7% to £14.6m.
“Our offer to potential new franchisees is increasingly compelling, enabling them to compete effectively and generate solid profits,” Hunter said.
“Franchisees have seen the potential to improve their profits by over £6,000 per year, compared to two years ago, through a consistent improvement in retail margin and the benefits of our award winning franchisee share scheme.”
Other Conviviality Retail fascias include Select Convenience and Wine Rack.
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