Devon-based retail empire makes £23M loss

The Range has made a pre-tax loss of nearly £23m despite rising sales from stores. CDS (Superstores) Ltd reported losses for the second year running in its latest accounts.

The Plymouth-headquartered company, ultimately owned by Chris Dawson’s wife Sarah Dawson, made a pre-tax loss of £22.848m for the year to the end of January 2024. This follows a loss of £18m reported in 2023.

In previous years the company, which trades as The Range, made huge profits, including £81.521m in 2022. Holding company Norton Group Holdings Ltd has also posted losses for the second year in a row, of £14.011m pre-tax, as PlymouthLive reports.

The losses come despite The Range seeing revenue jump from £1.26bn to more than £1.296bn, according to documents filed at Companies House. This was mainly due to the opening of 12 new stores.

In his strategic report, Mr Dawson, CDS director, said the year had been “challenging” due to the cost-of-living crisis which saw household incomes squeezed, and higher energy and commodity prices. He said the poor summer weather in 2023 had hit sales of patios and other outdoor leisure products. The company also faced higher staffing costs.

However, Mr Dawson has overseen the opening of a 1.2m sqft distribution centre in Stowmarket and he said: “This significant investment in infrastructure will help support the group’s expansion as it continues to open new stores across the UK and Republic of Ireland.”

Mr Dawson said The Range continues to face cost increases and uncertainty around energy pricing. He said; “The material increase in national living wage is further squeezing profitability within the group. Whilst this impacts the group, it also has the potential to impact our customers who are seeing their disposable income squeezed.”

But he stressed: “The group is well positioned to withstand these challenges operating in the value retail sector.” And he said trading this year had been “very strong” and it would be looking to expand its number of stores and was gaining market share “on the back of some high profile retail casualties".

Six new stores have opened so far this year and Mr Dawson said the company will “show further growth in sales from continuing operations as the group continues to explore all facets of retailing.”

Last year Mr Dawson’s CDS bought parts of high street retailer Wilko after it collapsed successfully re-launching several stores. Earlier this month he rescued Homebase after it collapsed into administration - saving 1,600 jobs.

CDS acquired the Homebase brand name, intellectual property, and up to 70 of its UK stores, which will continue to trade under the Homebase banner but will eventually be turned into The Range stores. The Homebase brand will continue online though.