AF BLAKMORE

FINANCIAL REPORTING: ANNUAL RESULTS

CONVENIENCE SUSTAINS AF BLAKEMORE DURING LOCKDOWN LOWS

INVESTMENT IN STORE PROPOSITION, RETAIL PRICING AND HOME DELIVERY HAVE KEPT THECOMPANY’S RETAIL OPERATIONS VIBRANT, WHILE FOODSERVICE HAS SUFFERED.

A strong performance by AF Blakemore’s (AFB) convenience retail operations has helped sustain the company’s profitability in the past year despite the negative impact of the virus lockdown on its foodservice and wholesale distribution divisions, and its exit from the cash and carry marketplace.

AFB’s overall sales for the financial year ending 30 April 2020 saw a decline of 7.2% from £1.14bn to £1.05bn, while profits were £6.1m, up slightly on the previous year’s figure of £6.0m. The group operates 275 company-owned Spar stores and 21 Philpotts prepared food stores, and also services 679 independently-owned Spar stores in central England and Wales through its Trade Partners division.

AFB Chairman Peter Blakemore said it was an “excellent result,” as the company incurred many increases in costs and provisions to meet the challenges posed by the pandemic.

He commented: “The company has enjoyed strong sales throughout the pandemic in the supply and operation of convenience stores. Great customer service, strong availability and an investment in retail pricing within our managed estate have resulted in like-for-like sales consistently outperforming our competitors.

“Strong convenience sales have helped to balance the reduction in sales across the company’s Foodservice and Wholesale Distribution divisions, which have been impacted by a significant decline in business across the travel, tourism, leisure and educational sectors due to the Covid-19 pandemic.”

During the first lockdown the business launched a withinthe-hour retail home delivery service, and the company has continued to develop its Store Cluster strategy, which aims to deliver store propositions aligned to the needs of consumers, with a focus on ‘food for now’ and ‘food for later’. The company also invested an additional £2.4m in its wholesale pricing structure to improve competitiveness at the retail level.

Further investment includes the construction of a multitemperature distribution depot in Bedford, that is expected to be operational from late spring 2021, as well as the July 2020 acquisition of online retailer and wholesaler Vegan Store.

Blakemore concluded: “Whilst the Covid-19 pandemic is causing market volatility, I believe the company is wellpositioned to take advantage of new opportunities as a result of an increased capability to change and respond to these fluid market conditions.”