The group behind Bloom & Wild saw its losses increase to over £100 million in the latest financial year, as consumers reduced their flower purchases due to a lack of cash.
Online florist known for its bouquets that can fit through a standard letterbox posted a £100.6M loss before taxes for the fiscal year ending March 31, 2023. This compares to a £20.5M loss the previous year. The group’s revenue, which includes Bergamotte, Bloomon and other brands, dropped from £145 to £118 during this period.
The retailer in London said that it was affected by “a significant change in the macroeconomic climate”. The rapid rise in inflation led to a drop in consumer confidence, and the squeeze on real incomes. This triggered a cost-of-living crisis throughout Europe.
The report also said that the “Covid-induced spike in ecommerce trading for operators… is unwinding, as consumers return to physical stores”.
According to its latest accounts filed with Companies House, the business recognised a goodwill impairment of £76million for two acquisitions that were made in 2021. The company said that it has “continued faith” in the two brands.
Bloom & Wild is one of those “lockdown winners”, as the customer numbers increased during the pandemic. In 2021, it expanded by acquiring rivals in France and the Netherlands .
Since then, online florists such as Freddie’s Flowers have reported a decline in business after customers returned to brick-and-mortar shops. The rising cost of living has also forced consumers to reduce their spending on non essentials. Inflation has also driven up the price of flowers.
Aron Gelbard said that the “historical” results reflected the “change in economic conditions when the cost-of-living crisis began in spring 2022, before we shifted the strategy from growth towards profitability”.
Bloom & Wild’s goal was to become a more profitable company at the beginning of the year. This included reducing its operating costs and marketing investments.
Gelbard and Ben Stanway founded the business in 2013, a former management consulting firm. Ben Stanway left the group in 2015. He later founded the saving app Moneybox.
Bloom & Wild is Europe’s second largest online flower delivery service. Investors include Index Ventures, General Catalyst and General Catalyst.