As turnover reaches £2.8b, Home Bargains attributes growth to new store openings, relocations and improving sales at existing branches.
Newly filed accounts for TJ Morris, which trades as Home Bargains, show that the value retailer has witnessed a 13% increase in its turnover to £2.8b in the year to June 30th, 2020, and also saw its operating profit rise by 13% to £261m during the period.
The company said that its “financial position has strengthened” compared to the prior year in terms of net assets. A planned store opening programme and expansion plans have forged ahead during lockdown, with new store openings bringing the total number of retail outlets to 525 at the end of the period, up from 506 a year earlier.
The most recent new store, which opened in Twickenham, features a new format that the company plans to roll out further, if it proves successful. Senior store development manager Paul Cooney explained that the outlet offers “different ranges and narrower aisle widths to try and maximise every inch of space.”
The company also reported exceptional costs relating to Covid-19 of £14.4m in the year to June 30th, 2020. Gross profit was £886m, an increase from £778m, while profit before tax was £263m, up from £233m the previous year.
The business employed an average 25,300 staff during the period, 2500 more than the previous year, with about 2000 of the new jobs in retail and the rest in support roles in the company’s warehouses and offices.
Expansion at the retailer continues apace. In documents filed with Companies House, Home Bargains said it is aiming to eventually have between 800 and 1000 stores and employ 40,000 people.