The toy retailer’s European business has become its most profitable, and Smyths now wants to drive further growth.
As reported by The Irish Times, The Irish toy retail giant Smyths has injected €175m into its successful European business after the German, Austrian and Swiss entity posted 2020 pre-tax profits of €10.97m as sales rose 4% to €475.35m. This performance makes Smyths Toys EU HQ Unlimited Co the most profitable area of the business – and Smyths is now seeking further growth with the capital investment.
Overall, the retailer enjoyed record sales of €1.465b in 2020, with the European business alone accounting for 42% of Smyth’s €26m in pre-tax profits. There are 114 stores spread across Germany, Austria and Switzerland, 88 of which are in Germany. There are 113 stores in the UK and a further 21 in ROI, bringing the total portfolio to 248 stores manned by some 6,000 staff.
The €175m capital injection, which brings the retailer’s total authorised capital to €176m (Smyths only had €1m previously) means it will be able to continue its European expansion. Company directors confirmed that Smyths Toys outlets in Austria and Switzerland were ‘performing strongly’ after their reopening in 2021.