Blackwell’s 17% growth vindicates multichannel strategy, says Prescott

Blackwell’s has reported sales growth of 17% in its past financial year, following growth of 12% a year earlier. The good result, from the British Book Awards Book Retailer of the Year, adds to growing evidence of robust physical book sales despite the wider malaise on the high street. Sales in the second-half of this year are up a further 11%, the company noted.

Blackwell’s said that both its academic and the high street shops grew sales, with its children's book sales up 25%. However, its star performer was its website where sales grew by more than 100%. According to Nielsen BookScan, for the 52 weeks up to 30th June, the market grew 2%, and has grown a further 2% so far this year. Blackwell's said that it had outperformed the market in 22 of the 24 general Total Consumer Market bookselling categories, as measured by Nielsen BookScan

In the year to 30th June 2018, the independent chain grew sales to £56.5m. In just two years Blackwell’s sales have now increased by almost one third, from the £43.3m reported in the period to end-June 2016, which it said vindicated its strategy of building “multi-channel growth through sustained investment across its shops, online and distribution capabilities”. Blackwell’s Corporate, Professional and Institutional business continued to expand, both in the UK and overseas.

The consolidated accounts to June 2018 reported a reduced loss on ordinary activities of £1.7m, before interest and exceptional items, compared with a loss of £2.9m in 2017. Nevertheless, the improved results have allowed the company to pay a £100,000 bonus to Blackwell’s staff. Blackwell's has said that intends to move to an employee ownership scheme once the business is consistently profitable: Blackwell's has not reported a profit since 2014, when it recorded a profit of £400,000 on sales of £54m.

Chief executive David Prescott said: “We are delighted to be bringing the Blackwell’s brand to so many new customers, as well as reconnecting with old friends across the world and, in doing so, closing the gap on making sustainable profits." He added that "despite difficult trading conditions, both academic and high-street shops also grew sales and increased trading contributions during the year". This included nine months of trading for its new bookshop in the Westgate Centre, Oxford, and a new, relocated shop at Nottingham University. During the year Blackwell’s entered into a partnership with Kortext that saw the digital platform provider acquire Blackwell’s eLearning business, enabling the company to continue to supply print and digital textbooks to customers.

Sales in the current financial year, from July 2018, show Blackwell’s continuing to outperform the market with year on year sales up by a further 11% on a like for like basis to date.

2019 will mark Blackwell’s 140th anniversary.