Oliver Bonas profits hit by wage hikes as growth proves ‘hard to come by’

Oliver Bonas has warned growth is proving ‘hard to come by’ as even its middle class shoppers feel a squeeze.

The retailer, which sells jewellery, stationery and clothing, revealed profits took a hit last year as costs rose following Rachel Reeves’ Budget.

It said the economic backdrop in 2024 ‘did not provide a favourable trading environment’ after retailers were whacked with higher employer costs.

Oliver Bonas’ wage bill rose from £31.3million to £35.3million.

Despite disposable incomes rising, this ‘at best’ brought consumers back to ‘where they were prior to the cost-of-living crisis’, the group said.

And ‘any extra income was being saved or used to pay down debt’, according to Oliver Bonas.

The economic backdrop in 2024 ‘did not provide a favourable trading environment’ for Oliver Bonas

Its board warned the outlook for the current year is ‘not easy with cost rises coming through but growth hard to come by’.

It comes amid fears around a slump in the job market and nervousness among consumers ahead of the later-than-usual Budget on 26 November.

The cautious tone echoes that of other retailers in recent weeks, including Next, Greggs and JD Sports.

Profits last year plunged from £8.6million to £7.8million, despite sales rising from £135.7million to £150.2million.

‘We have to hope that the government’s growth ambitions start to bear fruit as the year progresses,’ the group added.

Oliver Bonas was founded by ‘Olly’ Tress, who turned gifts for his friends from his travels abroad into a business. The first store opened in 1993.

It runs 90 stores in the UK and is also sold online on the Next website.

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