Thorntons profits melt away in heat of supermarket battle

2014-12-23 03:58:37

(MENAFN- ProactiveInvestors) Chocolate maker Thorntons (LON:THT) has issued a profit warning after a big reduction in orders from UK supermarket chains.

The firm which closed 39 stores last year said major grocers ordered less and took in stock later than anticipated.

This meant prior year sales of high-volume lines couldn’t be repeated.

Previously the group had flagged a 16% dip in UK sales in the 14 weeks to October but at that time had hoped to make up the shortfall.

Supermarkets have been lowering prices and stocking up on cheaper alternatives to stave off competition from rivals meaning less luxury chocolate appearing on the shelves.

Thorntons said problems its new distribution depot in Derbyshire also led to lost and late sales with missed promotional slots and re-orders.

In September the firm announced a 60% jump in annual profits to £7.5mln helped by cost-cutting.

Chief executive Jonathan Hart has attempted to turn around the business by selling its treats online and through supermarkets instead of its own high street shops.

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