16 June 2000

In an effort to revive its flagging fortunes, troubled West End toy retailer Hamleys has launched a new marketing campaign, including its first home shopping catalogue in ten years. It hopes the new initiative, which will also include an expanded website, could lift sales by up to £1million in its first year.

Simon Burke, who was appointed chief executive last year, claimed that Hamleys was poised for a turnaround: "With my hand on my heart,” he said, “I have now purged the troubles of the company."

Turnover had risen from £47.8 million to £51.7m, although profits from continuing operations for the fourteen months to March 25 slid from £6.4 million to £3.81m on a restated basis. Exceptional losses stemming from refurbishment costs and operational closure reduced pre-tax profit to £27,000.

News source: Financial Times