James Convenience Retail returned to operating profit last year after refurbishing stores, disposing of loss-making sites, and focusing on value helped to offset rising costs and wider market challenges.
According to its latest accounts at Companies House for the year ended 26 March 2025, turnover remained flat at £36.2m, falling slightly from £36.3m the previous year.
Gross profit, however, improved by 0.5% to £7.9m as the retailer pushed a value strategy through price-marked products.
This provided “a competitive price to our customers during difficult financial times” while also helping to “minimise the impact of the declining tobacco market”, the accounts said.
The retailer recorded a £100,000 operating profit, compared with a £292,000 loss the previous year. Pre-tax losses also reduced significantly to £67,000, from £457,000 in 2024, while the group posted EBITDA of £822,000 for the year.
The Costcutter-supplied convenience operator now runs 36 stores after the group exited several “commercially unviable” locations hit by rising operating costs, illicit tobacco trade and shifting shopping habits, with further disposals planned.
The group said, however, that it had established “a sustainable business model for the long term” by refurbishing existing sites and investing in food to go.
It added that the stores it transitioned to the Costcutter brand the prior year continued to deliver “significant and sustained sales growth” due to the improved range of product and recognition of the Costcutter brand.
The retailer is currently converting its transport locations to the Costcutter On The Go fascia, following its debut in January last year. As part of the rebranding, stores were being refurbished with revised product ranges to provide an “improved convenience offer for our customers”, it said.
It also intends to invest in technology to ensure savings and improve efficiencies across stores and head office operations.
“Given the current year performance, the investment anticipated within the group and forecasts prepared by the management, directors believe the group has a very positive future,” the accounts said.
“The thanks of the directors are expressed to store colleagues, the support office team and all key stakeholders in supporting the company through the challenging times of recent years and continued support in returning the group to a profitable position.”
No comments yet