AF Blakemore saw decline across its retail and wholesale businesses as it experienced its first profit loss since 2022, but has vowed to “reset the business” through investments in its store estate and ranging.
In recently filed annual accounts for the year ending 27 April 2025, revenue across the group fell year-on-year from £1.18bn to £1.09bn. During the same period, it saw operating losses of £7.8m, compared to operating profit of £12.2m in the previous trading period.
AF Blakemore blamed high food inflation, falling customer confidence and lower demand for tobacco, vapes and alcohol for the dip. As a result, support for retailers was affected, as headcount across head office support, store labour and depot teams was “reduced significantly.”
Read more: Blakemore partners with AI firm to modernise operational management systems
The company also said it had exited the majority of its standalone Philpotts sandwich stores, with the offer being integrated into its Spar sites. Despite the decline, grocery retail performance had improved in the second half of the year, fuelled by store trials with Iceland. The trial is to extend across Blakemore’s Spar estate alongside a new partnership with forecourt group EG On The Move, live in more than 80 of the petrol giant’s stores.
In the results, AF Blakemore chairman Peter Blakemore said: “Our largest market is retail convenience, which continues to benefit from strong customer led growth, the fastest growing part of the UK grocery market.
“Two of our core traditional shopping missions in the grocery convenience market, tobacco and vaping and alcohol, have seen significant sales declines on the back of continued government legislation and health pressures,” Blakemore continued. “We expect sales of these categories to continue to decline in the coming year.
“In the coming year we are planning to further strengthen our fresh food and grocery proposition, offering greater choice in the food for now and food for later missions. We are planning to roll out a new premium sandwich offer across our stores under the Philpotts brand, and we have an exciting partnership with Iceland to increase the choice of our range of own-brand and branded frozen foods,” he added.
