Consumers are buying fewer luxury items due to continuing concerns about the economy according to Hotel Chocolat as it explained the fall in its sales for the last six months of 2022. Total revenues for the period were down to £129 million from the £142 million it had posted for the same period in 2021.
As previously reported, the business has commenced with a formal redundancy consultation process as it seeks to improve its profitability having also seen its half-year gross profit fall by just under £10m.
Angus Thirlwell, CEO, Hotel Chocolat was keen to stress that it is currently trading in line with expectations but that it was cautious about consumer response for its key imminent seasonal events including Mother’s Day, Easter, Eid and Father’s Day.
“It is telling that there are progressively fewer successful chocolate store models in the UK and elsewhere.”
Nonetheless, Hotel Chocolat is planning to open a further 50 stores in the UK over the next 3-5 years, with the first of them appearing in the Autumn.