Toy retailer cuts jobs and closes stores! revenue actually increases?

After a 9.19% drop in sales in 2023, Hamleys finally made a comeback in 2024. As of December 31, 2024, Hamleys' total sales for the year reached £53.3 million (approximately 510 million RMB), an increase of 3.69% compared to £51.4 million in 2023. Moreover, the pre-tax profit soared from a meager £673,000 in 2023 to £3.7 million in 2024 (approximately 35.68 million RMB), growing more than fivefold.

In terms of regions, the performance in Europe is good, while the global regions are sluggish. Specifically, the revenue from the UK headquarters increased by £2 million from £43.9 million in 2023, reaching £45.9 million in 2024, accounting for 86.12% of the company's total revenue; the revenue from the rest of Europe surged from £166,000 in 2023 to £832,000 in 2024; however, the revenue from other global regions declined, decreasing from £7.3 million in 2023 to £6.5 million in 2024.

The night-time foot traffic at Hamleys' UK store is quite considerable.

Behind this performance growth is the adjustment of cost reduction and efficiency improvement by Hamleys.

In 2024, Hamleys closed 29 underperforming stores worldwide throughout the year, but during the same period, it also opened 22 new stores, indicating its adjustment in store location strategy. Currently, there are 11 stores operating in the UK and a total of 176 franchised stores globally. According to Hamleys' official website, there are 8 stores in China.

At the same time, the company made personnel adjustments, laying off 34 people, and the current number of employees is 401.

The Hamleys board stated in a statement: "The revenue growth in 2024 is mainly driven by franchise fees, and we are optimistic about the introduction of new areas and the growth in existing regions."

Hamres will open a flagship store in 2024 in collaboration with local partners in Italy.

Entering 2025, the Hamleys board believes that the UK retail market remains challenging as consumer spending continues to be affected by inflationary pressures. Therefore, the company maintains a cautiously optimistic outlook on business growth and continues to focus on cost optimization to ensure the group's profitability.

At the same time, the Hamleys board stated: "We will continue to strive to improve various forms of customer experience and propositions to ensure the long-term sustainability of the business. We remain focused on finding future growth opportunities, and implementing a robust digital strategy is a key growth driver for the UK in 2025."

Hamleys is the oldest toy store in the world, founded in 1760. It has withstood global economic recessions and the ravages of world wars, boasting a history of 265 years, though it has changed hands multiple times.

• In 2003, the Icelandic investment firm Baugur Group privatized Hamleys for £47.4 million.
• In 2012, it was transferred to Groupe Ludendo for 60 million pounds.
• In 2015, it was acquired by the Chinese company Qianduoduo for 100 million pounds.
• In 2018, it was sold for £70 million to Reliance Industries, the largest in India and the second-largest private enterprise in the world, transforming from an authorized operating partner in India to the parent company, continuing to this day. Currently, India is also the country with the most Hamleys stores globally. According to the official website, there are over a hundred stores of all sizes combined.