Labour shortages trigger ‘below expectations’ Black Friday for lifestyle retailer Joules
Labour shortages led to a Black Friday performance below expectations, according to lifestyle group Joules.
Global supply chain challenges led to “some higher costs and stock delays,” while labour shortages in a third-party operated distribution centre caused “extended” delivery times.
“These factors were particularly acute in November, including the Black Friday period, which alongside weaker year on year online traffic contributed to performance during this month being below expectations,” the group said.
In a pre-close trading update for the 26 weeks to 28 November 2021, the group reported “strong” customer demand.
Group revenue increased 35 per cent to £128m, compared to £95m in the 2021 financial year comparable.
Group profit before tax and adjusting items for the period is anticipated to be in a Ange of £2m-2.5m. This is compared to a £3.7m figure for the previous year.
Supply challenges were set to continue across the world “during at least the second half of the groups financial year,” Joules said.
It also pointed to “increased consumer uncertainty” as a result of the spread of the Omicron Covid variant.
Shares in the retailer were down 18.8 per cent in early trading on Tuesday morning.