Increased profits for 99p stores
Cost control and improved buying-in margins contribute to improved results
Operating profit for the company was £400,000, compared with a £100,000 loss the year before with the gross profit margin increasing to 21.5% from 20.7%, despite upward pressure on raw materials and wages.
Following a trial of a coffee offer and bakeries that sit alongside a grocery range including cheese, butter and ham, the retailer has introduced fresh produce in recent weeks, including bagged fruit and vegetables, as it aims to take on convenience supermarkets.
99p Stores has tried out a new store format that will be rolled out to 60 stores this year and a further 90 next year.
The company also has an ambitious investment programme of around £4m over the next 12 months.
