Sales have dropped at Wilko, while the firm has slipped to a pre-tax loss in its latest financial year, ended January 29 2022, as the pandemic continued to hit the Nottinghamshire retailer.
Sales reduced by £42m to £1.2bn, while profit before tax declined by £44.2m from £5.5m in the year prior to a loss of £38.7m.
Wilko noted that is has faced continued challenges to its trading environment, with the COVID-19 pandemic leading to a national lockdown in the first quarter of the financial year and the emergence of the Omicron variant during the final quarter of the year, meaning footfall was significantly impacted during its peak trading period.
The company says it was also hit by the severe and widespread disruption to supply chains globally, and resource shortages at its distribution centres.
With a difficult backdrop, Wilko’s directors are said to be satisfied with the results.
The annual results follow reports in The Times that the business is in talks to land an emergency loan as cost pressures grow for retailers as we approach Christmas, and Wilko agreeing a sale and leaseback deal with DHL at its Nottinghamshire distribution centre to unlock £48 million.
