wilko reported a year of solid growth with sales of £1,513 million for 2016/17 (£1,464 million 2015/16) representing growth of 3%. This performance reflects the investment in infrastructure, growing demand for own brand products, convenience for customers shopping online and continued investment in new stores. The company finished the year in a healthy position with no debt and an operating profit of £18 million, slightly down from £23.6 million in 2015/16. 

“Despite a tough trading environment we continue to believe in the quality and value of our offer,” said family director Lisa Wilkinson. “From the evidence of our growing sales income it looks like our customers agree with us. We will continue to invest to secure our business for many years to come.”

The uncertain economic and geo-political events affected the operating profit for wilko including the fall in sterling, introduction of the national living wage, higher cost of goods and significant investment in the business.

Total capital investment increased from £24m in 2015/16 to £41m in 2016/17 demonstrating the shareholders’ and directors’ commitment to invest in the business and provide the platform for growth. This investment programme covered 19 new stores (compared to eight in 2015/16). The company continued to focus on investing in its IT infrastructure and more recently appointed Wincanton plc to manage all its transport operations to further improve operational efficiency.

There has been a greater focus on digital with the appointment of Sean Emmett as multi-channel director, helping to deliver changes which are resonating with customers. In the past year the company reported significant digital growth with a 15% increase in visitors resulting in a 25% increase in orders. Accessing wilko.com by mobile has grown by 50%, with the channel growing revenue by over 40%.

Total own brand sales have grown to more than 50% in the year. Behind that growth is original product design work from wilko’s design consultancy W’innovate which received international recognition with a Red Dot Award for two of its innovative garden products.

wilko Asia has gone from strength to strength, continuing to develop and source products for the range which has increased to nearly 3000.

Furthermore, wilko became a corporate partner in the Healthy High Streets campaign, aiming to revitalise 20 high streets of the UK’s most deprived towns. With the help of its team members and customers the business raised £1.3m for 12 regional charities throughout the year.