The chief executive of Thorntons, the chocolatier, has said trading conditions on the high street are worse than they were a year ago.
Jonathan Hart made his comments as the confectionery retailer posted an annual loss of £2.2 million and ditched its dividend.
Thorntons cited lower footfall and weak demand among UK consumers for a fall of 3.8% in like-for-like sales at its non-franchise stores over the 53 weeks to June 30. However, the chain enjoyed a strong Easter and underlying sales rose 0.7% in its fourth quarter as customers snapped up new ranges.
Hart said: “Our view is that the retail market, sentiment and footfall are weaker than they were a year ago.” He said these conditions vindicated its decision to close 36 stores last year, the first leg of its three-year plan to exit 120 stores, to leave it with an estate of between 180 and 200 company-owned stores.
Thorntons, which also has 177 franchise stores, made a loss of £2.2m over the year, following a £3.1 million hit on exiting unprofitable stores.
Total revenues were flat at £217.1 million, but commercial sales to big supermarkets, including Tesco, Asda and Sainsbury’s, jumped by 7.9% to £85 million.
Paul Wilkinson, an existing board member, will replace John von Spreckelsen as chairman in February. It has also appointed Bupa director Martin George to the board.
