The Port of Liverpool, owner of the Liverpool and Suburbia stores, managed to overcome the pressure that inflation and logistics costs maintain on the retail sector, and with this confirms that it has left COVID-19 behind. After the good results, the company is now taking precautions to avoid shortages in its stores during the next shopping season.
“Inventory construction continues in anticipation of the Mother’s Day and Father’s Day night sales, reducing the risks of product shortages due to supply problems due to the closure of the economy in China and increased costs due to the global economic situation”, said the company in its quarterly report sent to the Mexican Stock Exchange.
The company directed by Graciano Guichard González, in the first quarter of the year, accumulated sales of 32,246.7 million pesos, which represent an advance of 26% compared to 25,586 million pesos in the same period last year, when they started with a closing of stores to avoid contagion from the second wave of coronavirus in the country.
The Port of Liverpool also doubled its operating flow (EBITDA) by closing the quarter at 4,929.1 million pesos, an increase of 116.2% compared to 2,279.9 million in the same period of the previous year. While the net profit was 2,232 million pesos, from 690 million last year, when the company was still dealing with the aftermath of the pandemic crisis.
In its financial statement, the firm detailed that from January to March of this year, the income of Liverpool stores with more than a year of operation grew 27.6%; for Suburbia the advance was 24.1%. This year, all the units of both brands remain open in their entirety.
In Liverpool stores, the return to normality gave a boost to categories such as clothing, fragrances, shoes, bags and accessories, while multimedia continues to lead the share of sales, particularly with cell phones, white goods and computer equipment.
Suburbia’s results are a reflection of the recovery in the apparel category, as well as a healthier inventory position, with a significant reduction in slow-moving merchandise. As of the date of this report, six new stores were opened under the brand’s rubric.
The company’s past due portfolio remains at 2.4%, a decrease of 2.8 points compared to the previous year and which gave the company the opportunity to release almost 270 million pesos from the uncollectible reserve.
The group’s digital sales reached a share of 21.8%, practically the same level of the last two quarters. Taking into account the strong base of comparison related to the closing of stores during the sale of the same period of 2021, a decrease of 16.4% was obtained against last year, however it had a growth of 3 times against pre-pandemic levels.
“In the period between January and March 2022, we fulfilled our promise of delivery to the client by 95%, reiterating our commitment to them. Thanks to the projects implemented in terms of logistics, the cost of delivery during the quarter decreased by 7% compared to the same period of the previous year, while the delivery time also improved by 25% compared to the first quarter of 2021”, detailed the company.
The Click & Collect operation reached a 31% share. During the period, same day and next day deliveries increased 89% against the previous year. Direct home deliveries from stores more than doubled from the previous year.
Likewise, in February Liverpool inaugurated the Arco Norte Logistics Platform, PLAN. As of this date, a progressive transition is carried out from our distribution center in Huehuetoca to the new development for Hardline articles.
