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Bloom & Wild, the popular online florist renowned for its letterbox-friendly bouquets, grapples with mounting losses exceeding £100 million during its latest financial year.
As cash-strapped consumers tighten their belts, the company faces a tumultuous period marked by shifting consumer behaviour and economic instability.
During the fiscal year ending March 31, 2023, the London-based retailer recorded a staggering loss before tax amounting to £100.6 million, a stark increase from the £20.5 million loss reported in the previous year. Revenue for the group, encompassing brands like Bergamotte and Bloomon, plummeted from £145 million to £118 million.
Bloom & Wild attributes its financial woes to the sweeping changes in the macroeconomic landscape, characterized by surging inflation and dwindling consumer confidence. As the cost of living crisis grips Europe, consumers increasingly reined in spending on non-essential items like flowers, dealing a blow to online retailers.
Moreover, the company notes a reversal of fortunes in the wake of the Covid-induced e-commerce boom, as shoppers flock back to physical stores. This trend further compounds Bloom & Wild’s challenges, exacerbating the downturn in online flower sales.
In a bid to navigate these turbulent waters, Bloom & Wild undertook measures to shore up profitability, including cost-cutting initiatives and reduced marketing expenditure. Despite the setbacks, the company maintains confidence in its brands, even as it grapples with a significant impairment of goodwill amounting to £76 million for acquisitions made in 2021.
Once hailed as a “lockdown winner” for its surge in customer numbers during the pandemic, Bloom & Wild now faces the harsh realities of a post-pandemic world. As consumer preferences evolve and economic uncertainties loom large, the online florist confronts the daunting task of restoring financial stability amidst a challenging market landscape.
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