Pureplay retailer Marks Electrical has reported “strong trading” in the first four months of the year, bucking the weakening trend in the electricals market.


Chief executive Mark Smithson said: “We’ve started the year well despite a very tough market backdrop”

In a trading update for the four months to July 31, 2022, ahead of its AGM today, the pureplay electrical retailer reported revenue growth of 13.7% to £27.7m despite trading against a “particularly challenging market backdrop”.

Marks Electrical also grew market share in both the major domestic appliances and consumer electricals markets, driven by strong performances in categories such as televisions, vacuum cleaners, washers and dryers, and air conditioning.

Chief executive Mark Smithson said: “We’ve started the year well despite a very tough market backdrop, with the group’s sales for the first four months up 13.7% compared with the online MDA and CE markets being down over 20% in the first months of our FY23.

“We’ve seen strong competitive activity both in pricing and marketing, with heavy discounting of headline prices and higher cost-per-click marketing expenses. Despite this, we have maintained our tight control on inventory, cost management and disciplined capital allocation, ensuring we are in a healthy cash position and remaining focused on profitable market share gains.

“Our differentiated operating model, leading customer service and free next-day delivery provide a unique offering that sets us apart from the competition. I’m proud of the performance our team has delivered in a very challenging market.

“While the remainder of the year is difficult to predict, our focus on maintaining a market-leading customer proposition and healthy cash flow provides us with the best platform to generate continued profitable market share growth.”

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