The Group sells into over 80 countries around the world where our brands and products are enjoyed by millions of consumers. Our key markets are the UK, the USA and South Korea.
Established sales channels
The Group sells into over 80 countries worldwide and has sales offices in the UK, US, Canada, Europe, The Middle East and the Far East.
We sell our product increasingly via online channels including our own UK and US websites and through a network of distributors, agents and own-retail stores.
The increase in consumer demand for online has been further impacted by our focus to grow this channel, and 44% of total sales in our core UK and US markets are made via an online platform, whether our own ecommerce store, pureplay web stores or omnichannel retailer websites.
We serve our customers from our warehouses in the UK, the US and Canada. We also direct ship from sourced suppliers to maximise efficiency and lead times where appropriate to do so.
SALES
£30.8 million
The UK was the second largest market for the Group in 2023, with sales of £30.8 million (2022: £28.3 million) or 30% of the Group’s total revenue.
Market implications
Consumer spending in the UK was negatively impacted by high inflation and rising interest rates but we saw growth in this market as we benefit from additional sales in our home fragrance division from our new grocery channel relationship and the AromaWorks London brand acquired in August 2022.
Following the Covid-19 pandemic there has been a notable shift to omnichannel retail with the importance of servicing customers both in physical retail stores and online.
Response
We continue to react to market trends in our brands and online capabilities. We have invested significantly in our websites, teams and fulfilment capacity to ensure we can satisfy the increased direct to consumer demand.
New customer relationships have created an opportunity to drive UK sales growth despite the tough economic backdrop.
SALES
£42.4 million
North America (US and Canada) was the largest market for the Group at £42.4 million of sales (2022: £48.9 million) or 41% of the Group’s total revenue.
Market implications
The North American market was impacted by aggressive destocking by major retailers ahead of anticipated fears of a slowdown in consumer spending. Where we have retailer sales out data this evidences that demand remains robust and will result in improved trading once this destocking exercise is complete.
Response
We continue to leverage our brand heritage in order to provide further growth in this important market. Spode Christmas Tree, first introduced in 1938, remains a US market favourite and our Nambé brand (acquired in 2019) has added additional scale to our operations.
As sales have reduced during the year we have focused on operational efficiencies and this will allow a strong rebound once sales in this market stabilize.
SALES
£21.5 million
Sales into South Korea were £21.5 million (2022: £26.7 million) or 21% of total Group sales in the year.
Market implications
The South Korean market was negatively impacted by high inflation, rising interest rates and the impact of foreign exchanges on consumer goods prices.
This resulted in a fall in demand from the end consumer and then via our distribution network.
Response
We continue to launch new products and broaden our range of brands and distribution routes into South Korea in order to reduce the market reliance on core ranges like Portmeirion Botanic Garden.
We also continue to build our online presence in this market.
COUNTRIES
80
The Group sells into more than 80 countries around the world which accounts for 8% of the Group’s revenue. Sales increased to £8.1 million during the year (2022: £7.0 million).
Market implications
New distribution partners in Asia have helped to offset the worldwide challenging retail markets, with the majority of our sales markets impacted to some extent by inflation which suppressed consumer spending and retailers destocked.
Response
We continue to invest in our international design and sales teams, and develop market specific products to meet local demands.
We have seen strong performance during the year in Malaysia, and we aim to continue to build new sales markets.