Lady Bamford's renowned farm shop, Daylesford Organic, has reported a significant financial downturn, posting a £3.6 million loss last year as customers increasingly turned away from its premium products.
This sharp drop comes after a modest loss of £291,000 last year, marking a worrying reversal from the company's growth and profitability during the pandemic.
Daylesford Organic, a prominent name in the UK organic farming retail industry, attributed its deteriorating financial situation to a “difficult trading environment” exacerbated by widespread inflationary pressures. The company's revenues showed minimal growth, rising just 2% to £50.2 million in the last financial year, a stark contrast to 15% growth the year before and a 27% increase in the year ending March 2021.
This slowdown follows a period of robust sales during the Covid-19 pandemic, which had made Daylesford profitable. The retailer operates four stores in some of London's most affluent areas, including Sloane Square and Marylebone, in addition to its flagship farm store in the Cotswolds. Daylesford is known for its local produce, such as £8 bunches of asparagus and £10 packets of biscuits, as well as luxury homewares and garden products.
Owned by Lady Bamford, wife of Tory donor and JCB chairman Lord Bamford, Daylesford Organic has committed to continuing operations despite financial losses. Lady Bamford has pledged to provide financial support to the company 'if necessary', as stated in Companies House documents.
In recent years, Lady Bamford has expanded her business interests, including opening a new health club on Daylesford's 3,500 hectares of organic farmland. In a 2023 interview with The Telegraph, she explained her selective approach to membership, emphasizing the need for a serene and exclusive environment.
Despite the current financial setbacks, Daylesford Organic plans to invest further in its agricultural property. Future developments include an events space aimed at creating additional growth opportunities. The Cotswold location already offers a variety of classes, such as flower arranging, to attract visitors and increase customer engagement.
