Electricals retailer Richer Sounds has revealed its pre-tax profits slumped 18% to £2.8m in the year to the end of April.
However, sales increased in the year, soaring 25% to £168m, according to documents filed at Companies House.
Management highlighted “inflationary increases in store and central overheads” and said since year end the “difficult general trading condition has continued its pressure on gross margins”. However, turnover has remained strong with like-for-likes “above last year”.
Richer Sounds, which trades from 48 stores across the UK, has started to find life tougher, given the ramp up in service from electricals chains such as Currys and Comet as well as new entrant Best Buy.
It has also seen the march of the food supermarkets encroaching on the electricals market, as well as online retailers such as Amazon.