Bodycare: Reeves creating ‘too much risk and uncertainty’ for us to expand
Bodycare has slowed down the pace of opening new stores across the UK as it blamed the government for creating “too much risk and uncertainty”.
The Lancashire-headquartered retailer added that “the current climate of increased costs and legislation” is impacting its growth plans.
Bodycare has also said that government policy on the winter fuel allowance and the uncertainty around future tax rises, especially National Insurance, led to Christmas trading not meeting its expectations.
The comments have been included in new accounts filed with Companies House for the chain’s latest financial year.
For 2024, Bodycare posted a turnover of £132.5m, up from £128.8m, while its pre-tax loss reduced from £1.7m to £1m.
Earlier this month, the Treasury revealed that the winter fuel payment will be handed out to 9m pensioners whose income falls below £35,000 a year in a £1.25bn blow to Chancellor Rachel Reeves’ chances of keeping her £9.9bn headroom intact.
The government’s U-turn on winter fuel payments was revealed in May following poor council election results and fury from Labour backbenchers.
In the year, Bodycare increased its headcount from 1,361 to 1,520.
Bodycare hits out at Reeves’ tax rises
A statement signed off by the board said: “The review of the business and actions undertaken in 2024 are now showing positive movements in sales and gross margin.
“We have increased the participation of our own brand products whilst delivering growth on branded products.
“Our pricing and constant review of both competitor and CPI [Consumer Prices Index] have enabled us to maintain the 10 per cent difference in pricing compared to our competitors.
“Christmas 2024 did not meet expectations. The key factors were government policy on the winter fuel allowance which disproportionately affected our base customer and the uncertainty around future tax rises, especially National Insurance.”
During the year, Bodycare opened 12 stores and close two.
However, the company added that it has “slowed down the new store opening program” as it sees “too much risk and uncertainty in the current climate of increased costs and legislation coming from the UK government”.
Bodycare started out as a market stall in Skelmersdale more than 50 years ago by Margaret and Graham Blackledge.
In May 2022 the couple, who had remained at the helm of the company for five decades, announced it had appointed advisers to explore a sale. No updates have been published since