Value retailer Home Bargains plans to smash its £1bn revenue target two years earlier than expected, after reporting record sales and earnings in its full-year accounts.
Home Bargains, owned by TJ Morris, revealed pre-tax profits soared 28% to £45.4m in the year to June 30. Revenue rocketed 25% to £482m and like-for-likes increased 10%.
The 190-store retailer wants to double its store numbers in the next four years, with a target of 350 shops, topping the £1bn sales barrier by 2013. Last year the retailer forecast this would be achieved by 2015.
Home Bargains operations director Joe Morris said investment in stores has helped lift sales. He said: “Although the high street continues to suffer, we expect turnover to rapidly grow in the coming 12 months, following a period of investment.”
In the year to date, total sales have continued to soar 25%. The retailer expects a similar level of growth for profits.
Home Bargains, which has opened 30 stores in the past six months, plans to open 40 to 50 stores in the next 12 months as it capitalises on the weak property market. It opens its new £35m warehouse extension in Liverpool in November.
Morris said: “It’s nice to see profit growth in what is an incredibly competitive environment. We have a small coverage of the UK and have mapped out 600 stores in total.”
Morris said he has noticed more affluent customers shopping at Home Bargains as they take advantage of the branded goods, but he said the retailer primarily relies on the “time-rich and money-poor, which is a growing market”.
He said he is confident Home Bargains will continue to buck the downturn. “In the next 12 months we plan to expand Home Bargains across the UK and recruit up to 2,000 more staff to serve the increasing number of customers,” he added.
Property agent Bennett acted for Home Bargains.
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