TJ Hughes Returns to Profit One Year After Transition

One year after relocating from its long-standing site on London Road to Church Street in Liverpool, retailer TJ Hughes has returned to profitability, despite challenges posed by the ongoing conflict in the Middle East. The iconic Liverpool store has successfully navigated the impacts of the pandemic and rising energy costs.

Last year, TJ Hughes moved its flagship store to a 70,000-square-foot former H&M location in the city’s retail district, after operating for over a century on London Road. Following the relocation, the retailer, which operates 14 stores mainly in North West England, reported pre-tax losses exceeding £400,000 for the year ending December 31, 2023.

Recently, TJ Hughes, managed by LHR Holding, released its accounts for the same period, showing a pre-tax profit of £139,294, although revenues fell slightly to just under £26.6 million compared to £27.7 million in 2022. Director Anil Juneja described the results as “encouraging after the difficulties of recent years,” highlighting the significant challenges posed by COVID-19 and rising energy costs.

The retailer sources many of its products from the Far East, keeping prices low for customers. However, the ongoing conflict between Israel and the Palestinians has affected shipping routes, with Houthi rebels targeting commercial vessels in the Red Sea. This has led to increased transport costs as some ships avoid the area and the Suez Canal.

Juneja noted that while geopolitical tensions could impact trade routes in the coming year, he remains optimistic about the company's prospects. He stated, “Going forward, it is expected that trade will continue to improve as shoppers return to the high street,” attributing this to the company’s diverse range of market-leading brands and a dedicated workforce.

Having previously saved TJ Hughes from administration in 2011 when it was a national chain with 57 locations, Juneja relaunched the business from just six stores. He has since expanded it to 14, with plans for a new store in Warrington, while also maintaining an online presence.