NEOM, the fast-growing digital-first wellbeing brand whose innovative products help customers sleep better, stress less, boost mood and improve energy, is pleased to provide an update on trading for the five weeks to 2 January 2022.
Total group revenue over the Christmas period increased by 35%, building on the significant growth achieved in 2020. Underpinning this growth, NEOM’s direct-to-consumer (DTC) revenues comprising UK, EU and US e-commerce platforms and own retail stores, increased 35% year on year to £6.9m (2020: £5.1m).
The impressive performance was delivered in spite of the well-publicised wider sector pressures and rounds off another year (FY21) of substantial double-digit top-line growth for the wellbeing brand.
The business delivered an exceptionally strong trading performance in the US, where growing customer demand and increasing awareness of the NEOM brand drove a 217% increase in e-commerce revenues during the period. The business has operated in the US through its own e-commerce site since mid-2020, and more recently through wholesale partners including Nordstrom, Anthropologie and Goop. NEOM is committed to supporting and investing in the US market and has confirmed the opening of a US warehouse in early 2022.
UK DTC e-commerce revenues, as well as those generated through the brand’s EU-specific website which was launched in July 2021, also delivered strong double-digit growth.
NEOM’s retail estate of five wellbeing ‘hub’ stores across the UK and Ireland achieved a 65% uplift in sales, with strong LFL sales growth over 2019. This very pleasing performance was achieved despite reduced high street footfall figures and is testament to growing awareness of the NEOM brand and its differentiated and innovative product offering.
Sales generated through NEOM’s digital and retail wholesale partnerships also grew significantly. The business works with leading department stores including John Lewis and Selfridges as well as e-commerce partners such as LookFantastic and Feelunique.
Sales growth across all channels was driven by increased consumer demand as customers sought to purchase NEOM’s giftable home fragrance, bodycare and skincare wellbeing products for loved ones and themselves in the run up to Christmas. Particularly popular during December were NEOM’s Overnight Face Cream (launched in 2021), its innovative Wellbeing Pod Luxe scent diffuser (launched ahead of the Christmas season), and the highly sought-after Christmas gifting range.
Oliver Mennell, NEOM co-founder and CEO, commented: “Our very strong Christmas trading performance, delivered against impressive prior year growth comparatives, illustrates the strength of our brand and quality of our offer, our growing customer base and increasing consumer demand for wellbeing products.
“I am extremely proud of our teams, who have worked harder than ever over the festive period to deliver for our customers around the world despite considerable widespread logistics challenges. Demand for products that supercharge wellbeing has continued to grow, with more customers than ever coming to us for our innovative, natural and aromatherapeutic offering.
“We remain focused on deepening our market share in the UK while also broadening our reach in new international markets such as the US and Asia. Underpinned by the strength of our leading digital-first business in a rapidly growing sector, we look to 2022 and beyond with great excitement and confidence.”