Adnams stores look to new opportunities

02 April, 2010

Adnams says its Cellar & Kitchen stores came “close to a break-even position” in 2009 following a “very tough” 2008.

The shops, which achieve around 70% of their sales from wine and beer, increased their turnover by 34%, according to managing director Andy Wood.

There are nine shops in the estate, including a larger branch in Southwold, Suffolk, which features a café.

Wood said: “These shops have succeeded in attracting new customers, particularly affluent female customers. We are keen to improve their results further and realise the fuller potential of the Cellar & Kitchen proposition.”?A new retail director has been identified and will be announced in the coming weeks.

Retail development manager Caroline Fox said: “Our brief hasn’t changed. The target of 30 shops still stands, but in the recession there have been limited options for expanding our stores because consumers aren’t spending.

“This year is about looking at the opportunities as they come along.”?Fox said Adnams had looked at some former First Quench stores but those available in its target areas were too small for its requirements.

But she said Cellar & Kitchen’s growth would not be restricted to sites with enough space for a café. “Cellar & Kitchen works in its own right, but where we have the space we can install a café. Because of our expertise in the hospitality sector we can make it work.”?Adnams’ operating profits rose from £1.5 million in 2008 to £3.2 million last year, on turnover up 9% to £51.3 million.

Executive chairman Jonathan Adnams sounded a note of caution over the outlook for the coming year, warning that the economic picture remained “uncertain”.

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