Thorntons looks to refresh stores after dip in profits

Fewer transactions and significant levels of discounting meant sales in the company's own stores slid 3.6 per cent to 129.8m in the year to June 26, contributing to a 2.4 per cent decline in group profits to 6.1m.

Thorntons hopes to reverse the trend by launching new products and refreshing existing ranges, alongside an updated marketing campaign ahead of Christmas.

It recently launched a new range of "indulgent" bars, while its continental range of products is due to be refreshed next month.

Thorntons, which has more than 375 retail stores, announced the latest initiatives as it warned it expected the tough conditions that have dogged trading in recent months to continue.

The firm issued a profits warning in May, when it also announced that chief executive Mike Davies would retire at the end of September in favour of a successor with "specific retail expertise".

It said today that the selection process for a new chief executive was well advanced.

As well as the pressure on own-store sales, Thorntons said franchise sales were down 14.7 per cent due to the impact of greetings card firm Birthdays going into administration in May 2009.

This was an offset by a 15 per cent rise in sales in its online division, while sales achieved through commercial customers were up 9.8 per cent to 62.6m.