Lady Bamford's popular farm shop, Daylesford Organic, has announced a major financial contraction, posting a £3.6m loss last year as customers increasingly turn away from its premium produce.
The sharp decline follows a modest loss of £291,000 the previous year, representing a worrying reflection on the company's growth and profitability in the pandemic era.
Daylesford Organic, a prominent name in Britain's organic farm retail sector, attributed the deteriorating financial situation to a “difficult trading environment” exacerbated by widespread inflationary pressures. The company's revenues showed little growth, rising just 2% to £50.2m in the latest financial year, a stark contrast to the 15% growth seen the previous year and a 27% increase in the year to March 2021.
The slowdown follows a period of strong sales during the Covid-19 pandemic, which pushed Daylesford back into profitability. The retailer operates four stores in some of London's most affluent areas, including Sloane Square and Marylebone, as well as its flagship farm store in the Cotswolds. Daylesford is known for its local produce, such as £8 asparagus bunches and £10 packets of biscuits, as well as luxury homewares and garden products.
Daylesford Organic, owned by Lady Bamford, wife of Tory donor and JCB chairman Lord Bamford, has committed to continuing operations despite the financial losses. Lady Bamford has pledged to provide financial support to the company “if necessary”, as stated in Companies House filings.
In recent years, Lady Bamford has expanded her business interests, including opening a new health club located within 3,500 acres of organic farmland in Daylesford. In a 2023 interview with The Telegraph, she explained her eclectic approach to membership, stressing the need for a quiet and exclusive environment.
Despite the current financial setbacks, Daylesford Organic plans to invest further in its farm site. Future developments include an event space intended to create additional growth opportunities. The Cotswold location already offers a variety of classes, such as flower arranging, to attract visitors and boost customer engagement.