Cheap approach pays off as Wilkinson sales soar

Wilkinson, the cheap retail chain that sells cushions and clocks for 97p, raked in its highest-ever sales of £1.45 billion in the year to January, as credit-crunched shoppers flocked to its stores.

Turnover was up 6.2% year-on-year, as 224 million shoppers visited Wilkinson's 321 shops, a 4.5% boost to the previous year's footfall.

The retailer — which has 14 London stores in locations such as Wood Green, Hounslow and Dagenham — is expected to do even better next year, as it cashes in on the demise of Woolworths, which collapsed into administration in November. Some of the 26 new branches Wilkinson opened in the last financial year are former Woolworths stores. And Britain's High Streets will be seeing more of Wilkinson in the coming months: the chain has plans to open another 15 shops.

Its expansion costs in the last financial year meant operating profit dipped from £48.8 million to £31.6 million.

But the retailer said it was "pleased with the progress", adding that the business has a "very strong balance sheet as a result of continued positive and robust management".

Chief executive Stuart Mitchell said: "We are in excellent condition to grow sales, profit and customers."