Outdoor firm eyes up Yorkshire expansion

Mountain Warehouse, the UK's leading outdoor gear specialist, is eyeing up seven Yorkshire locations as it embarks on ambitious expansion plans across the region.
Mountain Warehouse's outdoor clothing is aimed at the cheaper end of the branded marketMountain Warehouse's outdoor clothing is aimed at the cheaper end of the branded market
Mountain Warehouse's outdoor clothing is aimed at the cheaper end of the branded market

The group has just signed a deal for a new store in Sheffield at St James Retail Park (the Norton College redevelopment) which will open in early 2018 and it will open a store at a new phase of the Cortonwood Retail Park in Barnsley in August.

The firm is also keen to find a store in Halifax after a deal recently fell though. Its other targets include Leeds, Huddersfield, Helmsley, Thirsk, Guisborough and Bridlington.

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The group's chief executive Mark Neale said Yorkshire is the perfect place for new stores as the county has such remarkable countryside on its doorstep.

“Yorkshire is a key area for us. We like being in nice, middle class market towns, county towns and cathedral cities," he said.

“Yorkshire has one of the most amazing countrysides in Europe. We opened our first Yorkshire store in 1998."

The group already has stores in places like Beverley, Ilkley, Northallerton, Ripon, Whitby, Harrogate, Scarborough and Skipton.

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Mr Neale said that the economic downturn could work in the group's favour as more people holiday at home in the wake of the pound's slump. In addition as people tighten their belts, rambling offers a free way for families to entertain themselves.

"In previous downturns we have done well," he said.

"More people holiday at home and downturns have thrown up shop vacancies. Right now, we are in discussion on two Brantano stores because they went bust a few weeks ago.

"Rambling is a free way of entertaining yourself and the Yorkshire Dales are on your doorstep."

He was speaking as the group announced record profits and plans to open a further 40 stores this year, creating 400 new jobs.

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The group said pre-tax profits jumped 22 per cent to a record £19.8m for the year to February 28, while sales leaped 31 per cent to £184.8m.

Like-for-like sales, stripping out new stores, rose 16.5 per cent.

Mr Neale said he was "not overly concerned" about the prospect of shoppers reining in their spending in the face of rising inflation.

Unlike some retailers on the high street, he said the firm has managed to shield customers from Brexit-induced price rises thanks to currency hedging and favourable prices from suppliers in China.

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"In previous downturns we have benefited potentially from people being on bit more of a budget and shopping with us when they would have shopped at more expensive brands," said Mr Neale.

"Everyone says 'doom and gloom Brantano are going bust', but two new Mountain Warehouse stores are going to open as a result and will create new jobs."

The firm, which employs 2,600 staff, said online sales rose 51 per cent.

The group aims to have 300 UK stores and 300 international outlets. The firm currently has around 265 stores.

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The expansion drive comes as Mountain Warehouse marks 20 years since Mr Neale opened the first shop in Swindon.

"My aspirations when I opened my first shop was just to keep going to the next week. We were very short of cash quite often," he said.

"There was a period when I would come in in the morning and we would work out how much money we took yesterday and who we were going to pay to stop the creditors ringing.

"After 10 years we eventually established a business model based around own-brand products, which were higher margin and offered a better price for customers, and the business became quite profitable quite quickly at that point".

He said plans to take the business public were now "very much in the long grass" after postponing a proposed stock market flotation last year.