Iconic British pottery designer Emma Bridgewater has announced a loss of nearly £1.4 million for her homewares brand, due to deep discounts and increased online competition. This contraction follows a £1.1m profit the previous year.
The Stoke-on-Trent-based company, which Bridgewater founded herself, saw a 9% rise in sales to £36.2m in the year to May 2023, up from £33.1m the previous year. However, this was not enough to offset a nearly 20% rise in production costs to £21m and a 15% rise in recruitment and administration expenses to £16m, pushing the company into the red.
The company faced fierce competition in the housewares market, which led to significant online price cuts during the peak summer season, which affected sales growth. In addition, rising raw material prices and higher energy costs needed to maintain operations at its Stoke-on-Trent plant in Hanley have dented profits.
In response to the financial pressures, the company laid off dozens of employees from its 480-person workforce. Last summer, 40 jobs were eliminated, and the factory adopted a four-day work week for two and a half months. Another 36 jobs were cut in February, accompanied by a two-and-a-half-month reduction in working hours for both part-time and full-time employees.
To mitigate future losses, Emma Bridgewater plans to review its pottery stock levels until 2025 to avoid deep cuts.
Emma Bridgewater, along with brands like Cath Kidston and Boden, has created a niche for quirky and colorful homewares. The brand is particularly famous for its royal ceramics, with the then Prince of Wales unveiling a plaque designed by Bridgewater during a 2017 visit to Stoke-on-Trent.
Founded in 1985, Bridgewater began selling ceramics at a stall in Covent Garden before expanding into luxury retailers such as Harrods and Selfridges. With her ex-husband Matthew Rice, she acquired a Victorian pottery factory in Stoke in 1996, which was pivotal to the company’s growth. Today, all ceramics are still produced at this facility, making it one of the largest pottery companies in the United Kingdom.
Despite the financial challenges, the brand maintains a loyal following, with approximately 30,000 visitors attending factory tours annually.