Bloom & Wild, the well-known online florist recognized for its convenient letterbox-friendly bouquets, finds itself grappling with substantial financial losses surpassing £100 million in its most recent fiscal year. The company's struggles are exacerbated by a changing market landscape where cash-strapped consumers are tightening their belts, leading to a challenging period marked by shifting consumer behavior patterns and economic uncertainties.
During the fiscal year that concluded on March 31, 2023, the London-based retailer experienced a significant increase in its loss before tax, soaring to £100.6 million from the previous year's reported loss of £20.5 million. Revenue for the group, which includes other brands like Bergamotte and Bloomon, plummeted from £145 million to £118 million, reflecting a considerable decline in sales amidst the prevailing economic challenges.
The financial difficulties faced by Bloom & Wild can be linked to the notable changes in the macroeconomic environment, characterized by rising inflation rates and a decrease in consumer confidence. With the cost of living crisis gripping Europe, consumers are cutting back on spending, particularly on non-essential items such as flowers, which has had a significant impact on online retailers like Bloom & Wild. Moreover, the company faces the added challenge of a shift in consumer preferences back to physical stores, reversing the beneficial trend it experienced during the e-commerce boom induced by the Covid-19 pandemic.
In response to these challenges, Bloom & Wild has implemented strategies aimed at improving profitability, including cost-cutting measures and reduced marketing spending. Despite the setbacks, the company remains optimistic about its brands, although it faces a substantial impairment of goodwill amounting to £76 million for acquisitions made in 2021. Previously lauded as a "lockdown winner" for its strong customer numbers during the pandemic, Bloom & Wild now confronts the harsh realities of a post-pandemic era where consumer behaviors evolve, and economic uncertainties pose significant hurdles to achieving financial stability in a competitive market.