Value retail chain looks to cut costs across 400-store estate
Family-owned retail chain Wilko has called in advisors as it looks to find ways to cut costs across its 400-store estate amid the current economic downturn.
Alongside a sizable greeting card and stationery offer Wilko is known for its value-driven homewares and household goods, but Retail Week has reported the business is seeking cost-cutting and restructuring options in an effort to shore up its balance sheet.
Wilko’s own-brand Christmas card packs include 15 designs for £1.75, and six novelty pop-ups or cut-out greeting cards for £5, while medium gift bags are £1.25 each or four for £4, but single cards aren’t available online.
Rising inflation, shipment delays and closures during Her Late Majesty Queen Elizabeth II’s mourning period and funeral are understood to have affected the business, which has both High Street and retail park stores.
Advisors from global consulting, strategy and advisory firm Teneo are believed to be assessing options for the company that was founded in 1930 in Leicester by James Kemsey Wilkinson, who was succeeded as chairman by his son Tony, whose daughter Lisa is now in charge having bought out her cousin Karin Swann in 2014.
Wilko has apparently been struggling with inflation and recently deferred payments to suppliers to protect cashflow, having now changed its terms so suppliers will be paid in a minimum of 60 days saying the changes better reflect a shift in the wider retail industry standard from monthly payments to six weekly.
Fifteen stores were closed earlier this year with Wilko saying the move was part of a review as a number of leases were coming to an end, then in June a new outlet was opened at St James Retail Park in Sheffield.
