Victorian Plumbing has decided to shut down its rival, Victoria Plum, subsequent to a £2m loss since acquisition in May. This move is part of a strategic effort to refocus resources and accelerate growth, backed by increased customer demand. The decision followed a consultation with Victoria Plum’s employees, projected to conclude operations by year’s end.
- Victorian Plumbing will close Victoria Plum following a £2m loss.
- The closure comes after a finalised consultation with Victoria Plum’s staff.
- Despite the loss, Victorian Plumbing expects to meet EBITDA expectations, bolstered by robust demand.
- The bathroom retailer recorded a 10% growth in order volume, setting a new milestone.
- The operational shift includes a new semi-automated warehouse in Lancashire.
Victorian Plumbing has announced the imminent shutdown of its competitor, Victoria Plum, following the acquisition earlier in May. This strategic move came after the company endured a significant financial loss of nearly £2 million. The decision to close operations by 31 December signifies a shift in Victorian Plumbing’s operational strategy, focusing on reinforcing its core brand and market position. The closure follows a comprehensive consultation process involving Victoria Plum’s employees, an essential step in managing workforce transitions responsibly.
In the wake of this substantial financial impact, Victorian Plumbing remains steadfast in its financial outlook, anticipating its adjusted EBITDA to align with market expectations by the conclusion of the fiscal year in September. This confidence is underpinned by a remarkable increase in customer demand, enabling the company to mitigate the adverse effects of the Victoria Plum acquisition. While the overall revenue saw a modest 4% rise, it is noteworthy that like-for-like revenue experienced a slight decline of 1%, discounting the Victoria Plum factor.
Driven by solid consumer interest, Victorian Plumbing has achieved a 10% increase in order volume, bringing total orders to over one million—a noteworthy achievement for this bathroom retailer. Such performance underscores the effectiveness of their product offerings, particularly their own brand ranges, which have resonated well with consumers, yielding strong gains in gross margin. Mark Radcliffe, CEO of Victorian Plumbing, emphasised the dual focus on profitability and brand consolidation in the UK market, affirming the company’s leading position within the industry.
Further reinforcing its operational capabilities, Victorian Plumbing’s new 544,000 square foot semi-automated distribution centre in Lancashire stands as a testament to their commitment to efficiency and growth. Currently, more than half of the daily orders are processed from this site, with a full transition expected by year-end. Radcliffe asserted that this facility will eliminate previous capacity constraints, thereby enhancing their strategic growth initiatives across expansion and trade categories.
Victorian Plumbing’s strategic measures illustrate a strong commitment to its core business, despite challenges with recent acquisitions.
