Stanfords looks to future after posting 2018 loss

Stanfords c.e.o. Vivien Godfrey says she is "not looking in the rear view mirror", as the company fell back into a loss ahead of its move to new premises in Covent Garden. According to accounts filed, Stanfords will save £800,000 in costs after the move with the company "very optimistic about the future".

Company accounts for Edward Stanford Limited as of 31st March 2018 show Stanfords has fallen back into losses in the last two years, with Godfrey saying this is partly due to static sales at the Long Acre site combined with a rapid rise in rent and rates. Turnover figures are not revealed. 

As a standalone entity parent company Edward Stanford Group Limited reported a £30,000 profit and supported Stanfords with around £200,000 during the year, according to Godfrey. 

But the chairwoman and c.e.o. is firmly looking at the future as the London store prepares to move from Long Acre to Mercer Walk. Godfrey told The Bookseller: "After several profitable years Stanfords has fallen back into losses in the last two years. This is partly because sales in Long Acre have been static as footfall along the street has fallen but a more important factor has been the rapid rise in our bills for rent and rates – which would have risen a further 50% if we had stayed put. It is mainly as a result of the unaffordable direction that Stanfords occupation costs were taking that the directors decided to relocate the business to nearby premises that offer a more usable space but are also, importantly, cheaper to occupy and cheaper to run."

The move will slash costs with Stanfords expecting to save £800,000 year-on-year, according to the latest financial statements. Although the board anticipates the new premises will have a “reduced footfall which will result in a loss of sales”, the directors - Godfrey, her brother Joe and Brian Finch - believe any potential profit loss from the move will be “more than covered by the savings created from the relocation”. 

Reflecting on the financial results, Godfrey said: "You go through years where some years are good and some years are bad. I think it’s unrealistic to assume you are going to follow a constant pattern of financial performance. We’ve made some important investments in the last couple of years which contributed to the financial results. It’s behind us, we’re moving forward, we’re very optimistic about the future."

Stanfords is expected to move fully to Mercer Walk later this month. “We see this as a wonderful opportunity to really reinvent Stanfords. We will retain the marvellous heritage, and the expertise that goes with it, as well as the extraordinary range of maps, books and other travel related goods that have made us famous but we will present it even better. We will continue to run author events in a dedicated space in the new store and we will continue to grow our web business that complements our bricks and mortar business. The web business is running over 20% ahead of last year,” added Godfrey. “The investment required to effect this transformation is substantial and is being underwritten by the directors and also by many individuals, some of whom are already shareholders and some of whom are new investors. I must add that our many suppliers have also been incredibly supportive, recognising not just the substantial past of Stanfords but also our future opportunities.”