Holland & Barrett Ramps Up Revenues Despite Widening Losses

Holland & Barrett has made significant strides in boosting its revenues despite facing widened losses due to persistent investment in its transformation efforts.

For the financial year ending on September 30, 2023, the health and wellness retailer saw pre-tax losses increase from £59.6m to £65.3m. This heightened loss was primarily a result of the company’s commitment to investing around £70m in revamping its stores, technology, and new product development. This move came after a debt buyout by owner LetterOne in November 2022.

The extensive transformation undertaken by the business resulted in attracting more customers to its stores, driving an impressive 11% increase in total sales to £806m. Within the UK alone, sales rose by 11% to £565m during the period.

Despite these losses, executive chairman Alex Gourlay remains confident in the company’s financial stability and the tangible benefits reaped from the strategic investments made over the past year. He highlighted a significant shift in public perception towards health and wellness, emphasizing the increasing importance of preventive care.

Gourlay outlined the company’s transformation approach, focusing on a mission-led wellness strategy that addresses various health needs, backed by personalized advice and science-based solutions for customers. This strategy aims to provide easily accessible health and wellness offerings in the UK and core international markets.

To continue its growth trajectory, Holland & Barrett recently announced plans to open new concessions within Next stores, with the initial phase set to launch in three locations. This development is part of a wider £70m investment initiative aimed at refurbishing and refreshing its retail estate across the UK and Ireland.