JYSK: Losses continue as stores close and jobs shed
Losses continued at the UK arm of Danish homewares retailer JYSK as it closed stores and shed jobs during its latest financial year.
The business, which forms part of the global group, has reported a pre-tax loss of £3.2m for the 12 months to 31 August, 2024.
The total comes after JYSK also posted a pre-tax loss of £3.1m in its prior financial year.
The business last reported a pre-tax profit in the year to August 2022 with a total of £144,000.
New accounts filed with Companies House also show that JYSK’s turnover increased from £40.9m to £43.8m in the year.
But despite the rise in sales, the average number of people JYSK employed in the year declined from 180 to 151 as the number of stores it runs in the UK fell from 31 to 27.
JYSK hit by increased costs
A statement signed off by the board said: “There continues to be an unsettled retail market in the UK as a result of increases in [the] cost of living and challenges in supply and increased uncertainty as a result of the war in Ukraine.
“Despite this however, the business increased turnover. The company plans on creating growth through expansion of the retail estate over the coming years and investments in existing stores.”
JYSK added: “Turnover development stabilised over the course of the year, no longer impacted by government-led Covid open and closures that occurred in previous years, however inconsistent weather conditions over the summer months resulted in garden sales lower than expected.
“However, proactive cost management reduced the impact of the lower than expected sales.
“There were increases in costs in some areas due to the longer-term plan to invest in improvements in existing stores and continued expansion of the physical stores, inline with the overall strategy to bring JYSK closer to the customer and to ensure enhance [the] customer experience.”