Despite remarkable retail sales at Harrods and Selfridges, Fiskars UK, the company behind Wedgwood, has experienced financial setbacks. The company’s profits have plummeted in the past year.
- Fiskars UK reported a £1.4m pre-tax loss in 2023, contrasting with an £11.5m profit in 2022, largely influenced by economic challenges.
- The turnover of Fiskars UK decreased from £33.7m to £29.5m, highlighting the financial difficulties faced by the company.
- Significant marketing collaborations and organisational changes were undertaken in an effort to attract a new audience and improve financial stability.
- There is a positive outlook on recovery with improved sales in stores like Harrods and Selfridges, alongside developments in visitor attractions.
Fiskars UK, located in Stoke-on-Trent, owns renowned pottery brands such as Wedgwood, Waterford, Royal Doulton, and Royal Albert. In 2023, Fiskars UK reported a concerning pre-tax loss of £1.4m, whereas the previous year saw a substantial profit of £11.5m. This drastic change in financial outcomes is attributed to various economic and internal challenges.
The company’s turnover witnessed a decline from £33.7m to £29.5m last year. According to recently submitted accounts with Companies House, factors such as inflation and rising energy costs have dampened consumer spending and reduced factory efficiency. Acknowledging these hurdles, the company’s board stated, “Whilst cost of living pressures, including inflation and energy costs, continued to dampen willingness to spend and impact factory efficiencies, it was also a year of significant internal change.”
Amidst these financial challenges, Fiskars UK has embarked on efforts to engage a new audience for Wedgwood. Collaborative marketing initiatives include partnerships such as Wedgwood Web3 launched at the V&A in London, along with collaborations with Charles Jeffery Loverly and Palace. Additionally, a restructuring within the sales organisation has resulted in cost savings and a focus on strengthening partnerships with fewer, but stronger, account partners. “Recovery of international visitors to the UK, especially London, has seen stronger sales in-store at Harrods and Selfridges,” added the board.
The company is optimistic about its future, with the ongoing development of its visitor attraction at Barlaston seeing revenue levels return to pre-COVID-19 figures, although a significant number of international visitors are yet to return. Recent engagements with Japanese and Chinese tourist bodies are likely to influence growth in this area.
In a strategic move, Fiskars UK has recently consolidated the management of the House of Waterford and World of Wedgwood to leverage synergies between both sides, indicating potential for improved operational efficiency and profitability.
While Fiskars UK faces financial challenges, strategic collaborations and restructuring efforts offer hope for a profitable future.
