Employee-owned wholesaler Parfetts has announced record growth in the year ending June 2019 in both sales and profit.
It saw turnover hit £380m up 9.8% on last year’s figure and pre-tax profits leapt 17.5% to £6.1m. Like for like sales, excluding its new Middlesbrough depot and cigarettes, grew 5%.
A sales bonus of 2% was paid to all staff in July and a second profit share bonus will be distributed in October. Due to being employee-owned, both bonuses are tax-free.
Joint MD Greg Suszczenia said: “These are record results in both sales and profitability despite paying two bonuses to all staff as well as investing heavily in the business. It has been a tough 10 years for our business paying off the family, these results are a testament to the hard work of all staff in achieving that and a great springboard into the next decade.
“These results are really motivating as they reassure us that our strategy of caring for the traditional business while preparing for the future is also paying dividends in the midst of that process. Our strategies are working well for us in each depot but particularly the GOLD (Go Local Direct) delivered strategy out of Sheffield. It means we are now really focusing on growing GOLD sales Southward out of the Somercotes depot and Westward out of Aintree.”
Key factors in achieving these results:
- GOLD (Go Local Direct) operating out of Sheffield. The 24-hour depot successfully combines cash and carry and RDC from one site. It has seen sales grow 10% over the last 12 month as retailer value the ability to order up to midnight for next day deliveries.
- The Go Local symbol group continues to grow at pace and is now halfway towards achieving it’s target 1000 fascias with stores stretching from Wales to Hull and Newcastle to Birmingham.
- The Go Local retail club promotion package has grown from 2400 to 3000 members.
- The new Middlesbrough branch (ex Blakemore) has doubled its weekly turnover in just one year and is expected to achieve far more.
- Parfetts has launched its `digital suite` to focus on all things online, as 25% of sales are now received this way and is expected to grow substantially each year. However, 5000 customers still visit the stores each week.
Retail Director Guy Swindell said: “We are attracting retailers to our Go Local symbol group in record numbers. They value our independence and truly flexible approach to how they work with us. Our USP is that we recognise that retailers need the flexibility to trade in the way they want while being part of a professional template with lots of support & innovation.”
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