Multichannel retailer Seasalt says it enjoyed record sales in its stores over the Christmas period because they are predominantly located in small towns and resorts which feel safer to consumers.
In its trading update for the five weeks to January 1, 2022, the Cornish company said total sales across online, stores and via marketplace partners was up by 20 per cent YOY and by 33 per cent compared with 2019, the last pre-pandemic comparable period.
Seasalt which operates 70 stores enjoyed a record in person Christmas trading period as customers took the opportunity to experience the brand. Overall store revenues were up by 81 per cent on the same period last year and by 23 per cent on the same period in 2019.
Online sales remained strong throughout the Christmas trading period, with digital channels delivering most of the revenues, a trend that Seasalt expects will continue into 2022. Following the Christmas trading period, Seasalt says that its total annual sales to year ending January 29, 2022, will approach £100m, with an EBITDA of up to 12 per cent.
Following this strong year of trading and with a clear path to future growth, Seasalt is now looking to speed expansion via new partnerships and with access to external capital. It has appointed PwC to advise the board on its strategic options.
Malcolm Macdonald, Seasalt CFO said: “The strong store performance over Christmas is a continuation of the theme we have seen since they reopened in April. “We are very happy with the balance the business now enjoys from its complementary mix of a strong store portfolio and marketplace partners supporting the direct-to-consumer online retail channel, which represents 56 per cent of total sales. We now look forward to our exciting plans to grow the business further over the next few years by acquiring more UK customers, expanding internationally and developing our menswear range.”
In the current financial year, Seasalt has worked to develop its partnerships with third parties, including Next, Zalando and Amazon US. The brand launched online with M&S in April 2021 and in M&S stores from June 2021. Seasalt has invested more than £2.5m in new technology in the past 18 months, including new UK and international websites and industry-leading software that allows online orders to be fulfilled in stores.
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