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.”
Greg Suszczenia said there were various key factors in achieving these results. The 24-hour GOLD (Go Local Direct) depot operating out of Sheffield successfully combines cash and carry and RDC from one site and has seen sales grow 10% over the last 12 months as retailer value the ability to order up to midnight for next day deliveries. Next, the Go Local symbol group continues to grow at pace and is now halfway to achieving its target 1,000 fascias with stores stretching from Wales to Hull and Newcastle to Birmingham. The Go Local retail club promotion package has grown from 2,400 to 3,000 members.
The new Middlesbrough branch, formerly a Blakemore depot, has doubled its weekly turnover in a year. Parfetts has also launched its ‘digital suite’ to focus on all things online, as 25% of sales are now received this way and are expected to grow substantially each year. However, 5,000 customers still visit the stores each week.