Fishing gear retailer Angling Direct PLC (LON:ANG) has successfully tackled a challenging retail market, having started the new year with strong sales after a robust 2018.
In recent times, many UK high street retailers have collapsed or been forced to close stores as online competition and subdued consumer spending hurts sales.
READ: Angling Direct reels in strong sales as it opens new store in Nottingham
Angling Direct, on the other hand, has been expanding. The group opened three stores last year and launched a new store in Nottingham on Friday, bringing its total estate to 27 stores.
Chief executive Darren Bailey said the company has dodged the high street downturn, in part due to the specialist knowledge it provides to customers in stores.
“What you tend to find in a niche business like fishing is that people will always have a reason to go in store because they want information on what to buy,” he said.
He said another reason the company does well is that it focuses on its niche – carp fishing, which makes up 65% of the business.
Angling Direct revealed in a trading update on Tuesday that in February and March, total sales jumped 50.7% compared to a year ago, and like-for-like sales gained 28.5%.
Footfall at stores increased 29.5% on a like-for-like basis while online orders were up 27% during the two-month period.
Online sales to Europe were particularly robust, rising 66%.
Bailey said the firm dispatched products to 48 European countries last year, prompting the company to roll out more websites across the region, increase product availability and invest in technology.
Prepared for Brexit
He said the company is well prepared for a hard Brexit as most of its products come from Asia and it has a third party relationship in Europe it can rely on if there is an issue with tariffs.
Closer to home, Bailey said the group is looking at opening more stores in UK areas that will bring a potential turnover of more than £1mln.
“What I constantly look at is and what we all have to wary of is that retail habits, buying habits are changing all the time,” he said.
“If we start to see footfall going down in stores, which we’ve not seen yet, then it might be starting to tell us something.”
Positive outlook
For the year ended January 31, the company expects to report a 38.9% rise in revenue to £42mln.
In-store sales rose 50% to £19.74mln from the year before and were up 6.2% on a like-for-like basis, while online sales rose 30.3% to £22.26mln.
Looking ahead, Bailey said the group is “very positive” as its new store roll out is on track and online growth has been strong at the start of the new financial year.