Wren Kitchens’ parent company, West Retail Group, has experienced a significant decline in profitability for 2023, marking the lowest levels since 2017.
- The group’s pre-tax profit fell to £35.1 million, a sharp decrease from £75.8 million the previous year, with turnover dropping to under £1 billion.
- A significant reduction in workforce was observed, with 1,000 jobs lost as part of the company’s strategic adjustments.
- The sale of West Retail Group’s stake in Ebuyer coincided with increased competition and economic pressures in the home improvement sector.
- Investments in manufacturing facilities were highlighted as part of a strategy to bolster future growth in both UK and international markets.
The West Retail Group, owners of Wren Kitchens, posted a pre-tax profit of £35.1 million in 2023, almost halving from £75.8 million in 2022. This financial downturn marks the group’s lowest profit since 2017. An accompanying reduction in turnover was reported, falling from £1.25 billion to £991.6 million according to the latest accounts.
Wren Kitchens’ UK turnover experienced a decrease from £1.22 billion to £948.6 million. In contrast, the US market showed growth, with sales increasing from £28 million to £42.9 million. These financial shifts were coupled with a workforce reduction from 8,628 to 7,641 employees, as the company adapted to changing market conditions.
Significant strategic decisions were made during this period, including the disposal of West Retail Group’s interest in the online electronics retailer Ebuyer. This move coincided with the broader economic challenges that pressured the home improvement industry, exacerbated by rising interest rates and consumer cost of living issues.
Despite these challenges, West Retail Group made considerable investments in its manufacturing capacities. A new kitchen manufacturing plant in Barton-upon-Humber became operational, alongside developments at the Howden bedroom manufacturing site. These initiatives aimed to enhance production efficiency and reduce supply chain disruptions by decentralising operations across multiple sites.
The expansion of production facilities is intended to support the group’s strategic pivot into new markets, including the contract kitchen sector. This approach is part of the long-term plan to increase market competitiveness and mitigate risks associated with operational concentration at single locations.
West Retail Group’s strategic adjustments highlight an effort to stabilise and prepare for future growth amidst economic challenges.
