A.F. Blakemore saw its sales fall 4.6% to £1.18bn over the year to 28 April 2024. The wholesaler and SPAR store operator attributed the decline to the loss of a supply contract with EG Group after it sold most of its UK forecourts to Asda.
A.F. Blakemore stated that it also faced “the decline of the immediate convenience market in the UK”, with consumers trading down and buying lower quantities of goods.
Despite the hit to sales, the group’s EBITDA surged up 52% to £29.4m, which it said reflected positive actions on high-margin categories and cost controls. A.F. Blakemore noted that the second half of the year was more difficult with increased competition, poor weather and reduced inflation. However, footfall remained was positive and productivity initiatives also delivered improved margins.
A.F. Blakemore highlighted that sales momentum came from an ongoing investment in innovation with brands such as Vape, PRIME and MrBeast. It also pointed to the success of its own food brands, including Country Bridge Meats, Harriet’s Bakery, and Philpotts food-to-go. Meanwhile, in-store customer experience was elevated with a digital-first approach incorporating ESELs and digital screens across its company-owned estate.
The group also noted that significant investments in technology and equipment across its SPAR estate and supply chain had driven efficiency.
Chairman Peter Blakemore acknowledged the role of staff within the business, thanking them for their approach and commitment to the company. He also expressed his confidence in the “focus and energy” the group’s new CEO, Carol Welch and her senior leadership team, had brought to the business.
NAM Implications:
- The key for suppliers to check these stats to ensure they have achieved and maintained their fair share of Blakemore’s business.
