Neptune has grown its like-for-like sales and cash margin over the festive trading period as it executes its turnaround, Retail Week can reveal.
The premium home and furniture retailer posted a 15% increase in like-for-like sales in the 10 weeks to December 28, with cash margin up 20% – which the retailer said was driven by its “disciplined full-price position”.
Neptune said growth was delivered across all categories, and sales were particularly strong in kitchens, upholstery, and Christmas accessories and gifts.
The retailer reported a “record level of engagement from existing customers”, especially across its store estate.
Speaking to Retail Week, chief executive Mike Clark said: “Neptune has built its whole DNA on a 100-year mindset. We’ve never been about high-low pricing or Black Friday promotions. This is crafted quality furniture that will genuinely last a lifetime, reinforced by our lifetime guarantee and sustainable material ethos.
“We’re definitely seeing people making considered investments, particularly in kitchen, upholstery and dining, which have been very strong categories. What’s interesting about our Q4 is that sales have been driven by full price.”
During Black Friday, Neptune launched a price promise – promising shoppers that if the product they buy is discounted within the first year, the retailer will refund the difference.
Clark said: ”Our profitability is ahead of our sales growth, and we’re seeing significant growth in new customers who want something different and long-lasting. We’ve tried to capture customers’ imagination and encourage them to dream of a better future in their home.”
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