Speaking exclusively to kbbreview, George Dymond, the managing director of Magnet UK, insists that the retailer is undergoing a positive turnaround after a difficult few years, following the improvement in its Q1 financial results.
Discussing the company’s recently improved fortunes, Dymond explained that the boost to the company’s profits is a result of the “asset-light” model it began to transition to last year.
He commented: “It’s been well publicised that we’ve been getting out of some larger legacy stores, and that’s as much a quirk of history as anything else. We had 60% of our store estates come up for lease renewal last year, so we’re taking the opportunity to really look at our store state.
“For example, in Guildford, where we had a longstanding store of more than 20,000 square feet, we came out of that big mixed store and went into a high street location. So that’s the same team, but now much more focused on servicing our core magnet customer and we’re getting really, really strong results, and that’s happening around the country.
“If you think of Nobia UK, we’re the kind of business that might be too big for itself – if you think of all the different distribution points, so that’s why an asset-light strategy is where we’re focused on right now.
Although Nobia – the parent company of Magnet – saw a slight 5% year-on-year sales dip in Q1 2025, operating profit at the kitchen giant has reportedly improved by a significant 86% compared to 2024. The company’s profits after tax also improved by almost 45%, rising from SEK -219m last year to SEK -124m this year.
Discussing the current state of the company, Dymond admitted that Nobia had been hit by market-wide trading difficulties in recent years, but insisted that Magnet’s financial performance was beginning to see improvements.
He commented: “I won’t paint too rosy a picture, but clearly we’re in the middle of a big old turnaround, and with that, it’s not always plain sailing – but I’m definitely pleased with our performance in Magnet retail.
“I’d sum it up by saying we’re making good progress in a difficult environment. I think we can point to the market as a cause, but at the heart of that turnaround is making sure that we’re harnessing the power of our brand. We’ve got a fantastic brand, massive loyalty, and we’re really standing behind our quality – and I’ll repeat those words, many, many times.
When asked about his long-term strategy to continue turning the company around, Dymond said: “I know we’ve got a really successful model, and that’s what gives me real confidence here. Our store managers really are the best in the UK, and they know kitchens better than anyone else in the UK, I guarantee that. And the same goes for our kitchen designers too.
“So our job is to bring all that to life, and I think we’re definitely seeing things moving in the right direction, and going forwards you’re going to really see us focusing on our small format retail stores.”
