It takes a brave retailer to remove its goods from Amazon. But that’s what ProCook did last year.
It decided that selling its own-branded pots, knives and other cookware via the tech giant diluted its margins, and reckoned shoppers could be tempted onto its own website and shops.
Indeed, ProCook was so sure of itself that it listed on the London Stock Exchange in November. Reports had suggested a valuation north of £250 million, but ProCook was priced at the lower end of its range at 145p, valuing the group at £158 million. The shares closed last week at 152p, or £166.7 million.
ProCook began life as a mail-order business in 1996. It sells online and from 50 shops including flagships in the Westfield London and Stratford malls.
It has been a rocky ride for founder Daniel O’Neill, a former software developer who started the firm from his Gloucestershire cottage.
He opened his first store in 2000 but was forced to buy back the business from administrators after his bank withdrew facilities during the 2008 financial crisis. He then expanded the chain and website.
The company was one of a string of consumer brands to make the most of a lockdown-inspired surge in trading to go public — with others including Music Magpie, Made.com and Revolution Beauty. During the pandemic, ProCook benefited from the boom in home cooking, which sent sales up 37 per cent in the year to April 2021 to £53.4 million.
Its aim is to capture consumers who may look for cheaper alternatives to John Lewis or Le Creuset. According to reviews, its cookware can be a third of the price of Le Creuset — although the lower end of the market is also served by supermarkets and discounters.
A key test now is how sales respond as workers return to offices and restaurants. Rising energy bills and food prices will also take a bite out of discretionary spending, encouraging consumers to trade down.
ProCook is also being squeezed by high shipping costs.
Its shift away from Amazon last year was designed to increase its marketing to existing customers, which helped repeat purchases rise to 27.3 per cent. However, the move also drove a 7 per cent fall in online sales during the 12 weeks to January 9.
Still, ProCook is optimistic. In a trading update last month, it said revenues had risen 34.6 per cent compared with the same period last year. Same-store sales were up 51.9 per cent over the past two years (stripping out the third lockdown of 2020-21 when stores were shut). Buy.
