Neal's Yard Remedies was founded in 1981 and has 40 stores across the UK. Photo: David Willis/Alamy Stock Photo
Neal's Yard Remedies has trimmed its product range in a bid to cut costs as the struggling cosmetics retailer's losses mount.
The skincare and cosmetics specialist said it has made “significant” cuts to its product line-up. , as management implements a turnaround plan.
Rising costs and falling retail sales saw Neal's Yard losses widen to £6m in the last financial year, up from £939,000 in the last financial year 2021.
Details of the challenges facing the Dorset-based company were revealed in newly filed accounts, which said there were “material uncertainties” that could cast doubt on the company's ability to continue as a going concern.< /p>
The company said it was counting on shareholder support for the next financial year, with investors pumping £1.3 million into the business earlier this summer.
At the time the accounts were signed, the company was also in talks to refinance its revolving credit facility, due which expired in November.
Neal's Yard did not respond to questions about whether it succeeded in doing so.
Sales of Neal's Yard Remedies have fallen due to the pandemic, falling 7.8% to £41.6 million in the year to September 2022.
Company co-owner Barnabas Kindersley said it was due to “declining footfall and the slow return to high streets post-Covid”, as well as store closures, rising costs and high rental prices.
From the end of 2022 the company embarked on a landmark project shaking up its management and reducing its product range.
Mr Kindersley said: “While sales volumes have been maintained, challenges such as rising commodity costs and rising rents have required a reassessment of our strategic trajectory.”
The company's products are a staple in mid-range bathrooms and can be significantly more expensive than products sold by larger brands.
p>For example, a 50g tube of Frankincense Nourishing Cream costs as much as £33 on the website, while a 100g bottle of Purifying Palmarosa Moisturizing Cream ml costs up to £28.
In addition to removing products, the company also cut promotional offers by about 60% and closed unprofitable stores.
“Preliminary indicators show positive results from each of these actions,” Mr. Kindersley said.
Neal's Yard Remedies was founded in 1981 by Romy Fraser, an entrepreneur who left her teaching career to open the store on the small side street in central London from which the company takes its name.She originally came up with the style business as an alternative pharmacy offering homeopathic products and toiletries.
It has since grown into a global retailer and cosmetics manufacturer selling its products in Europe, North America and Asia, as well as Great Britain. It operates around 40 stores in the UK.
Known for its ethical and organic reputation, its products are made in its eponymous eco-friendly factory in Dorset.
Ms Fraser sold the company to her family in 2005 Kindersley, whose patriarch Peter Kindersley co-founded the publishing company Dorling Kindersley.
The 82-year-old's business empire, a longtime environmentalist, includes an organic farm in Berkshire, complete with an eco-centre where events such as weddings, talks and conferences.
Neal's Yard Remedies is now run by his son Barnabas and daughter-in-law Anabel.
To Neal's Yard Remedies contacted for comments.
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