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 51% 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
£28.3 million
The UK was the second largest market for the Group in 2022, with sales of £28.3 million (2021: £32.9 million) or 25% of the Group’s total revenue.
Market implications
The UK market was negatively impacted by the cost of living crisis, with significant inflation including energy costs which materially impacted consumer demand.
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.
In addition to our own websites, we increasingly service D2C via orders placed on retailer websites to provide the same service levels.
SALES
£43.8 million
The United States was the largest market for the Group at £43.8 million of sales (2021: £42.5 million) representing 40% of total Group revenue.
Market implications
The United States market experienced similar conditions to the UK, with a significant rise in inflation driven by labour shortages and energy costs. This put pressure on consumer demand due to a decrease in discretionary spending.
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.
We continue to invest in our teams and operational capabilities, particularly around our own ecommerce sites and dropship fulfilment capacity.
SALES
£26.7 million
Sales into South Korea were £26.7 million (2021: £18.7 million) or 24% of total Group sales in the year.
Market implications
The South Korean market has rebounded well after the Covid-19 pandemic, with strong consumer demand.
The Group continues to take a disciplined approach to this market in order to avoid overstocking and provide a stable base for future growth.
Response
We continue to launch new products and broaden our range of brands and distribution routes into South Korea in order to diversify and drive further growth.
The steps taken to stabilise this market have proved successful and we expect further growth from a stable base in the coming years.
COUNTRIES
80
The Group sells into more than 80 countries around the world which accounts for 11% of the Group’s revenue. Sales increased to £12.1 million during the year (2021: £12.0 million).
Market implications
Global retail markets remain challenging, with most of our sales markets impacted to some extent by wage and energy inflation which is suppressing consumer spending.
Sales into Europe in particular have been negatively impacted by the Ukraine war and subsequent rise in energy costs.
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 Canada, China and Malaysia, and we are aiming to build three key new sales markets in the medium term.