Music Week has been reporting on the robust growth in vinyl sales in the last few years.
So it’s perhaps no surprise that Rough Trade Retail UK has reported record revenue in its latest financial results, which have been filed at Companies House.
For the year ending December 31, 2022, Rough Trade posted sales revenue of £14,348,884, an increase of 35.8% on its previous highest turnover result in 2021.
Rough Trade Soho (pictured) launched in October 2022, joining the East and West stores in London as well as shops in Bristol and Nottingham. Live music and bars operate in three sites.
Profit before tax was down 38.3% year-on-year to £528,330. Rough Trade’s cost of sales and administrative expenses both increased significantly during 2022. The retailer became a Real Living Wage employer at the start of the year – an effective 12% pay rise for sales assistants – and paid out a profit earning bonus across all staff for the first time.
In the financial report signed by company director Lawrence Montgomery, Rough Trade revealed that it increased UK market share for vinyl to 8.4% (up from 7%). In addition to a strong performance in its core music category, Rough Trade also grew sales of books and turntables.
The financial report also noted the supply chain disruption and lack of vinyl manufacturing capacity, which limited sales potential on a number of lines and led to delays.
“The impact of Covid-19 and Brexit, the growth of vinyl demand and relative lack of investment in manufacturing capacity has put pressure on availability of in-demand catalogue,” stated the Rough Trade report. “We have adapted our strategy to minimise these issues albeit at the expense of holding more inventory. We continue to monitor these trends closely and adapt our buying processes accordingly.”
Rough Trade is also dealing with the impact of inflation.
“High inflation in the economy puts a pressure on demand for our goods and our colleagues’ economic security,” said the company. “We are mitigating this risk by monitoring customer demand closely and adapting our buying and marketing strategies accordingly.”
Separately to the results, Rough Trade announced this month that it is set to open a store and warehouse in Berlin. The flagship store will open in Q2 2024, with Dice handling ticketing for the 600-capacity venue on the site.
Rough Trade launched a New York City store in 2021.
Subscribers can read our music retail feature – featuring Rough Trade and others – in the laest issue or click here.