The Cotswold Company, the digitally-led premium handcrafted furniture and homeware brand, is pleased to provide a trading update for the nine-weeks from 30th October to 31st December 2023, covering the important Christmas trading period.
The Cotswold Company continued its strong growth momentum in the Christmas trading period, delivering net order growth (ex VAT) of 13% year-on-year (+£1.8m) to £16.4m. This represents transformational growth of 64% against the comparable pre-Covid period in 2019 and reflects the positive impacts of effective marketing initiatives driving increased online traffic and retail footfall and an increased and engaged active purchasing customers (+14% y-o-y). Gross order margins also increased by 2% points year on year reflecting the strength of The Cotswold Company brand, the impact of supply chain optimisation, and robust consumer demand for full price, high-quality, homewares that are built to last.
In the company’s core online channel (accounting for c.80% of sales), investments in the online user experience led to a 9% reduction in bounce rate and a 3% increase in conversion. Retail sales through The Cotswold Company’s retail showrooms increased 19% year-on-year driven by improved conversion and 11% like-for-like footfall growth driven by geo-targeted digital marketing. In the period, the Group opened its 9th UK store in the centre of Bath, which is trading ahead of initial expectations.
At the heart of The Cotswold Company’s proposition is responsibly sourced materials and expert craftsmanship. Its timeless products for the home and garden – from comfy beds to roomy wardrobes and sink-in sofas – champion traceable timber and are designed for life. Reflecting increasing consumer demand for premium, made-to-last furniture, more than 5,700 dining chairs were sold in the lead-up to Christmas. Best-selling products during the Period included the Chantilly Warm White 3 over 4 Drawer Chest (up 14% y-o-y), Chester Dove Grey 3 Door Sideboard (up 30% y-o-y) and Camille Limewash Oak Rattan Back Chair (up 27% y-o-y).
Ralph Tucker, chief executive officer of The Cotswold Company, said: “At The Cotswold Company, we are seeing consumers move away from ‘throwaway’ furniture in favour of high-quality, made-to-last products that better reflect their personalities across all rooms of the home – particularly in the run-up to hosting guests at Christmas and New Year. Our core furniture range comes with a 15-year guarantee, which appeals to customers who want great quality and sustainable pieces in their homes which showcase timeless design aesthetics and are available at great value prices.
Our long-term focus on product quality, combined with investments in our omni-channel model, including optimising the online user experience and delivery service, are driving conversions and customer engagement.
Looking ahead, we are confident that our online-led model underpinned with high-quality service and products as well as effective marketing investment will enable us to deliver our medium-term strategic goal of becoming the UK’s leading, premium handcrafted homeware brand.”
