Hamleys: More loss-making stores closed by iconic toys seller
Hamleys has closed another raft of loss-making stores as it battles to boost its bottom line.
The retailer shuttered 29 shops during its latest financial year, having also closed 40 in the prior 12 months.
Hamleys, which also opened 22 new locations in the year, now operates 11 stores in the UK and has 176 franchises across the world.
The closures have been revealed in new accounts filed with Companies House which show Hamleys’ revenue increased from £51.4m to £53.3m in 2024.
Its pre-tax profit also rose to £3.7m compared to the £673,000 it posted for 2023.
Hamleys’ UK revenue increased from £43.9m to £45.9m in the year while its European revenue also rose from £166,000 to £832,000.
However, the company’s sales in the rest of the world dipped from £7.3m to £6.5m.
During the year, the retailer’s headcount decreased from 435 to 401.
Hamleys ‘cautiously optimistic’ despite challenging market
A statement signed off by the board said: “We had a strong year, driven primarily by franchise royalties, and we’re optimistic about continued growth from it with [the] introduction of new territories along with organic growth of existing territories.
“The UK retail market remains challenging going into 2025 as consumer spending continues to be impacted by inflationary pressures.
“As a result, we remain cautiously optimistic on business growth with a continuous focus on cost optimisation to ensure the profitability of the group.
“The group is continuously striving to improve the customer experience and proposition across all formats to ensure long-term sustainability of the business.
“We remain focused in identifying opportunities for future growth and implementing a robust digital strategy is a key growth driver for the UK in 2025.”
Hamleys added: “The strategic review undertaken in 2024 to improve customer experience and proposition across all formats, introduction of new products and services, continued overseas growth and entry into new proprietary and franchise markets has delivered positive results for the group in 2024.”
Listed in the Guinness Book of Records as the world’s oldest toy store, Hamleys was founded in London in 1760.
Since 2018 it has been owned by its Indian business partner, Reliance Industries, following a deal worth nearly £70m.