A jewellery company with stores across England and Wales has reported a drop in turnover and profits due to the cost of living crisis. Despite this, the company remains positive about its future.
Clogau Gold, known for its design, wholesale, and retail of jewellery, reported a turnover of £21.7 million for the year ending September 30, 2023. This is a decrease from £22.9 million in 2022. Pre-tax profits also fell from just over £5 million to £2.8 million.
The company started the year with 15 stores. Due to the “unprecedented cost of living crisis,” like-for-like store sales dropped by 13% compared to the previous period. However, Clogau Gold stated that despite challenges to discretionary spending and changing shopping habits, its high street presence remained “vibrant and visible.”
By the end of the year, the company still had 15 stores. It opened a new store in Bristol in August but closed an outlet store in Cannock during the same month. Currently, 13 of its stores are boutiques, while the other two are outlets.
A statement from the board explained that the 6% decline in turnover is a general trend across all sales channels. This reflects the Bank of England’s policy to stabilize inflation through interest rates aimed at reducing consumer spending.
The board added that by the year ending September 30, 2024, Clogau Gold plans to open a store in Merthyr Tydfil, replace its ERP system, and manage its online outlet, clogauoutlet.co.uk, in-house. These initiatives are intended to enhance the customer experience and optimize stock levels, demonstrating the company’s commitment to delivering a seamless omnichannel solution.