Ferrero-owned chocolatier Thorntons announced yesterday that none of its stores will reopen after the current coronavirus lockdown comes to an end, with it instead focusing on its online activities and partnerships with supermarkets and other retailers.
The decision to close all its 61 company-owned high street shops follows a long period of underperformance and a shrinking of its estate in recent years. This has been exacerbated by the pandemic which meant its stores missed out on the usual boost during the key trading periods of Easter and Christmas.
In contrast, Thorntons online sales surged 71% last year with more than four million customers visiting its website.
Thorntons Retail Director Adam Goddard said: “The obstacles we have faced and will continue to face on the High Street are too severe. Despite our best efforts we have taken the difficult decision to permanently close our retail store estate.”
Highlighting the strong online growth, he added: “As customers continue to change the way they shop, we must change with them.”
The company also plans to build on the success of its sales through supermarkets and increase its international coverage.
Thorntons was acquired by Italian food giant Ferrero in 2015 for £112m. At the time, they were 242 stores in Britain and Ireland.
In a statement yesterday, Ferrero said: “We remain committed to this iconic British brand and will continue to invest further in the future potential of Thorntons to ensure we evolve with the times.”
Thorntons later confirmed that its more than 100 franchisees are not affected by company-owned store shutdown and will continue to be supplied with its range of chocolates.
NAM Implications:
- Given the added retail and online muscle…
- …a not unexpected move.
- Anyway, the franchise outlets will serve to maintain a physical presence on the High Street.
