The second half of 2023 saw watch sales in Great Britain decline, and the Christmas period has been described as one of the toughest for years.
That makes current trading significantly more challenging, but the storm clouds were only just starting to gather by the end of June, the financial year end for Berry’s Jewellers, which published another record set of results.
Sales rose by 5.3% for the family-owned independent, whose different businesses are now grouped under the top-co organisation of Berens & Company Limited, to £77.3 million.
Berry’s Jewellers, Inglis and Son Jewellers, Eaglesure Limited, John Dyson & Sons and Walton Packaging are all included in the results.
Operating profit was flat at £15 million despite significant investment in refurbishments and new stores including a Patek Philippe and fine jewellery showroom in York, a Vacheron Constantin boutique in Leeds and an Omega monobrand in Nottingham.
The group now runs a total of 13 stores across Leeds, York, Newcastle, Nottingham, Windsor and Hull.
In commentary accompanying the financial results, the company says that the directors expect a challenging retail environment for the year ahead (July 2023 to June 2024), but will keep investing, including the opening of a Breitling boutique in Leeds before summer.
Berry’s says it is also reconfiguring its portfolio of stores to meet the demands of the watch brands they offer.
Since the end of the reported financial year, Berry’s notes that Britain’s high streets are facing challenging times. It also reiterates that the so-called Tourist Tax is hurting sales.
“Turnover, particularly for the Windsor and York stores, continues to be adversely affected by the decision made by the UK government to abolish the VAT Retail Export Scheme (from January 2021). The company considers the continued abolition to be detrimental to its business as visitors to the UK will spend less on luxury items,” Berry’s argues.
