A kitchen retailer's parent company has reported its lowest profits since 2017, experiencing a significant decline in both profits and workforce. According to their latest annual report, West Retail Group, the parent company of Wren Kitchens' pre-tax profits fell to £35.1 million for the year 2023, a decrease of over 53% from £75.9 million the previous year. Turnover also dropped by more than 26%, down to £991.6 million, marking the lowest figure since 2020.
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In response to these challenges, the company reduced its employee count by over 1,200, bringing the total from 8,927 to 7,631—a 14.5% decline. The report cites factors such as rising interest rates and cost-of-living pressures as contributors to the downturn, as the kitchen market normalised after two years of pandemic-driven growth.
On a brighter note, Wren US Holdings, the company's U.S. branch, reported a 50% increase in turnover to £42.9 million. Wren continues to invest in its U.S. operations and has formed a strategic partnership with Home Depot to enhance its retail presence. Looking ahead, the company plans to re-fit showrooms and expand its kitchen and bedroom product lines.
Source: www.kbbreview.com