To add to Tesco’s woes, Harris + Hoole has reported a substantial loss of £12.8 million in its annual accounts. Reported sales were of £6.6m for the year to 23 February.
The company closed six outlets earlier this year as it rationalised its portfolio, and says that the results represent a high investment period for the business which is rapidly expanding with 18 outlets opening in the year.
Most of the business is based in the south-east of England, with some outlets sited inside Tesco Superstores.
Director and co-founder Nick Tolley said the business aims to build on its model of high-end artisanal coffee in the year ahead, using its mobile app to encourage and build customer loyalty.
Harris + Hoole operates in a highly competitive marketplace, but Tolley reckons that it is well positioned to continue to grow sales and market share.
It’s possible, of course, that Tesco’s backing may reduce as it reviews its strategy and plans in its own core and even tougher markets…