JW Filshill, one of Scotland’s oldest independent food and drink wholesalers, has seen an rise in pre-tax profits to £1.3m in the year to 31 January 2015, up from £0.8m the previous year.
The owner of the leading KeyStore convenience store brand achieved gross profit of £10.1m and reduced operating costs by a further £400k. Turnover for the year was £151m, down 4.4% in a highly challenging retail trading environment and amid strong competition.
JW Filshill, which marks its 140th anniversary this year, drove down costs by ramping up investment in IT systems and adding value to the services it offers its retail customers across Scotland and the north of England by introducing innovative selling techniques via social media platforms.
The company also launched its export subsidiary, JW Filshill International Ltd, trading as The Craft Beer Clan of Scotland.
Simon Hannah, managing director of JW Filshill, said, “The good news is that independent retailers are experiencing a resurgence in popularity with consumers who are increasingly turned off by the major retail multiples.
'However, we have the more recent competition from the discount retailers – Lidl and Aldi – which are striking a chord with consumers who previously haven’t considered shopping there.
“That’s why we’re investing more heavily in technology and social media, and trying to be smarter when it comes to marketing in order to engage with shoppers who are increasingly using mobile technology in their everyday lives.”
Hannah continued, “We believe the decline of sales in recent years will reverse and growth will return within the following three years due to population growth and a change in consumer spending habits migrating towards the convenience sector. We also expect export sales via our new JW Filshill International business to reach satisfactory levels by 2016.
“Interest in our export sales and consolidation model is increasing with more Scottish producers looking for us to take their products to international markets as part of a wider Scottish portfolio.”