Following today’s release of Mountain Warehouse Christmas trading figures for 2019, James Yacoub, retail analyst at GlobalData, a leading data and analytics company, comments: ‘‘Mountain Warehouse far outperformed in the final few months of 2019, achieving sales growth of 16.2% to reach £95.8m driven by store expansion, with record Black Friday sales contributing over £2.5m. The outdoor clothing and equipment specialist has capitalised on the growing appetite for outdoor activities as consumers continue to choose experiences over products. Its growth reiterates that retailers executing an effective pricing and merchandising strategy can achieve success even in the toughest trading conditions.
“Sales growth was driven through international expansion with new stores opened in New Zealand, Germany and Canada as well as a number of new branches throughout the UK. In the last 12 months the retailer has increased its store portfolio by around 17% (now operating almost 400 stores versus 340 last year) alongside this it has also managed to increase its like for like sales by around 6% demonstrating that it has not lost sight on developing its existing business.
“To the dismay of competitors, such as Decathlon and Sports Direct, the outdoor specialist shows no signs of slowing down with ambitious plans to open an additional 50 stores in 2020. However, Mountain Warehouse must be wary of over expansion particularly considering ongoing Brexit uncertainty and repressed non-essential spend. The retailer must therefore ensure that further portfolio expansion is farsighted, incorporating experiential retail into new locations to facilitate a unique shopping experience, to help future-proof the brand.”