Exports instrumental to Gear4Music sales

The York-based group is benefiting from the collapse in sterling after the EU vote as it exports instruments to Europe. The group saw a 191 per cent increase in European like-for-like sales in the first week after the referendum.

The group said it is opening two distribution hubs on the Continent which the group said would ensure the business is well placed for any Brexit fall-out.

The group reported “very strong” sales growth in the six months to August 31, particularly into Europe, and active customer numbers rose 45 per cent from 187,000 to 271,000. UK sales rose 44 per cent to £13.8m and European sales increased 169 per cent to £7.8m, resulting in a 73 per cent leap in total sales to £21.6m.

Gear4Music CEO Andrew Wass said the group will open its first European distribution centre in Sweden in November. “This centre will improve our delivery times to customers throughout much of Scandinavia, whilst at the same time reducing delivery costs in those territories,” said Mr Wass.

“We are also working towards opening a second European hub before the end of this calendar year. These first two distribution hubs will not only transform our European customer proposition, but also increase the overall capacity of our business to deliver over £100m revenues.

“This additional distribution capability will also be augmented with localisation of some purchasing and merchandising functions, ensuring the business is well placed for any Brexit eventuality.”