The turnaround of struggling UK confectionery chain Thorntons' looks to be underway, with the company reporting a 5.6% boost in fourth quarter sales for the ten weeks ended 29 June 2013, with total sales of £26.8 million.The chain recorded 'continued strong growth' in their commercial division, which is to become the chain's largest sector by year end in a bid to 'rebalance the business', according to the company.
UK commercial sales increased by 11.8% to £9.2 million, while private label sales increased to £0.7 million.
Demonstrating further progress in the transformation of the business, sales at Thorntons' poorly performing high street division showed a slight increase of 0.5% for the ten weeks ended 29 June 2013.
However, overall retail sales declined by 3.8% to £13.9 million during the period, owing to the closure of 34 stores during the year, in line with the company's objective of creating a 'sustainable retail estate' of 180-200 stores.
"I'm pleased to report further encouraging progress during the final quarter of our financial year. Despite being our smallest sales quarter we have continued to demonstrate the positive impact of our strategy and the strength of our brand", Thorntons chief executive Jonathan Hart said.
He continued, "The trading environment continues to be challenging. The actions we have taken are delivering positive results reflected by the progressive recovery in our profitability over the past 18 months."
