Fast-growing online electrical appliances retailer, Marks Electrical, has delivered double-digit revenue growth and continued to gain market share, as revealed in its latest trading update.
Revenue grew 13.7 per cent in the four months to the end of July, with customers snapping up air conditioning units and replacing old fridges during the recent heatwave, taking advantage of the firm’s next day delivery service.
Marks also reported of market share gains in MDA, up from 1.5 per cent last year to 2.1 per cent this year. Online sales helped push this along, it said.
Consumer electronics saw shallower market share gains, stepping up from 0.2 to 0.3 per cent in Q1.
Despite this, the retailer said it experienced a “strong performance” particularly in televisions, but also vacuum cleaners, washers and dryers, and air conditioning products.
Mark Smithson, Chief Executive Officer of Marks Electrical, said the company had seen “continued strong trading momentum” despite the challenging market back-drop.
“We’ve seen strong competitive activity both in pricing and marketing, with heavy discounting of headline prices and higher cost per click marketing expenses,” he commented. “Despite this, we have maintained our tight control on inventory, cost management and disciplined capital allocation, ensuring we are in a healthy cash position and remaining focused on profitable market share gains.
“Our differentiated operating model provides a unique offering that sets us apart from the competition. I’m proud of the performance our team has delivered in a very challenging market.
“Whilst the remainder of the year is difficult to predict, our focus on maintaining a market leading customer proposition and healthy cash flow provides us with the best platform to generate continued profitable market share growth.”
