Ramsdens presses on with Middlesbrough expansion amid …

A new Middlesbrough headquarters for pawnbroking chain Ramsdens is still on the cards with jobs growth also expected.

The company behind 158 pawnbroking, jeweller and holiday money shops in the UK has said new store openings and redevelopment of existing sites had delayed work on plans for its head office in the town, but that planning was likely to be submitted soon. On the back of stellar results, in which Ramsdens said pre-tax profits had jumped 68% to £3.7m and record figures are expected this year, chief executive Peter Kenyon said the expansion and growing popularity of the firm’s new and second-hand jewellery offer was causing a “positive headache” as more staff were being brought in to support the growth.

Mr Kenyon said Ramsdens’ Hillstreet Centre store was among the top five performers in the company’s nationwide network, and that his firm was competing well with traditional independent jewellers. And despite the current squeeze on household finances, shoppers still had cash to spend on rings, bracelets and earrings as gifts.

Speaking to TeessideLive after publication of the company results, Mr Kenyon said Ramsdens had built a reputation as a retailer of gold products and high end watches, but that there was an opportunity to cater to other jewellery buyers. He said: “The biggest challenge I have, probably that the industry has, is getting customers to have a look at our diamond products, because it really is fantastic value for money.”

But it was that cost of living squeeze that has driven renewed appetite for loans across the firm’s pawnbroking operation – making for record lending in January and March this year. That demand is expected to continue throughout this year.

Mr Kenyon added: “I think the heating bills have softened a little bit but the mortgage is the one that’s coming for most people. I was surprised, when I researched around this, just how many people are in fixed rate mortgages. People that come out of that have got a monthly payment shock coming.”

The six month results to the end of March this year included the opening of six new shops, including sites in Bootle, Basildon, Bradford, Croydon, Maidstone and Warrington. Ramsdens said lease renewals were generally said to have brought rent reductions and great flexibility, and relocations to take advantage of lower rents and better footfall.

References

1. ^{^} National charity to open new shop in Middlesbrough and are looking for volunteers (www.gazettelive.co.uk)