Warpaint London signs big deal with UK supermarket, targets US development
Beauty specialist Warpaint London, which owns the W7 brand, on Thursday announced a major deal with “a leading UK supermarket group”, although it didn’t tell us which one. It also released a short trading update that showed times are still tough.
The supermarket deal is key for a brand that operates in the affordable make-up space with supermarkets having become increasingly important make-up vendors in recent years.
Warpaint said the new collaboration means it will sell a core range of over 100 of its W7 branded products, in over 50 stores across the UK. The products will be displayed in bespoke free-standing display units located in the stores’ cosmetics aisles.
The company said this “represents a significant step forward in the strategy to grow UK market share through sales from new retail outlets for the group”. And it added that it’s in “detailed discussions with a number of other large UK retailers to stock the group's products”.
That would certainly give a boost to its UK operations that have seen challenges in recent periods.
Meanwhile, in the update, it said it expects to report a small revenue rise for 2019 with revenue hitting £49.3 million and adjusted profit before tax of £5.2 million, excluding one-off items of around £2.8 million. In the previous year, revenue had leapt over 49% to £48.5 million and its adjusted pre-tax profit had been as much as £8.3 million. It was £7.7 million in the year before that.
The company also announced that Ward & Hagon Management Consulting has been appointed “to provide additional strategic resource and to assist the company in implementing its strategic growth plans”. It will have a particular focus on “assisting the group to access new retail channels with a view to growing its UK market share and developing its business in the USA”.
Paul Hagon, a non-executive director of the beauty firm is also a partner of Ward & Hagon and will fulfil the role of Interim Strategy and Business Development Director. His Ward & Hagon partner, Martyn Ward, will be Interim Commercial and Transformation Director, both non-board roles and for an initial period of one year.
They’re both experienced execs in the retail and wholesale sectors, working with major branded suppliers to develop and deliver business plans, together with appropriate sales and marketing strategies.
Copyright © 2022 FashionNetwork.com All rights reserved.