LAINGS, the Glasgow-based jeweller, has hiked profits during its first full year of trading unaffected by Covid restrictions in three years as it pressed ahead with a £10 million store investment programme – but conceded that sales of “entry-level” products have in recent weeks been affected by the cost-of-living crisis.

Profits at the sixth-generation family company, which can trace its roots to 1840, increased to £5.4 million in year to May from £2.8m last time, driven by a 62.2 per cent in turnover to £60m, accounts newly filed at Companies House show.

The improved results came as Laings saw a resurgence in demand for luxury jewellery and watches, following the disruption arising from the pandemic.

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And the jeweller highlighted its determination to continue building its high street presence with a package of investment worth £10m, which includes the development of a state-of-the-art workshop and refurbishment of its head office at the B-listed Rowan House on Buchanan Street, Glasgow.

The £10m programme has included the expansion of Laings’ showroom in Cardiff, which is already credited with contributing to the jeweller’s performance, and the move to new 9,000 square foot premises in Southampton, where a £3m renovation is under way. The move will triple Laings’ physical footprint in the Hampshire city.

Laings, which also has a store in Edinburgh, highlighted “healthy growth” in online sales over the period.

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Chief executive Joe Walsh said: “With no mandatory lockdowns in the last year of trading, we have seen a strong recovery in demand for luxury jewellery and watches. Along with our highly skilled workforce, our retail stores are the cornerstone of our business. They are where our clients can immerse themselves in the history and traditional expertise of our business, and that of our prestigious partners.

“It is vital that we continue to invest for the future, making our physical assets as enticing and engaging as possible. Our online experience has also dramatically improved, helping people to make purchases more easily, when they cannot come to see us in store.”

However, Mr Walsh signalled that the cost-of-living crisis has in recent weeks begun to be felt on sales of entry-level jewellery.

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He told The Herald: “We have not yet noted the demand for high-end luxury being greatly affected by the cost-of-living crisis, however we have observed a slight downturn for entry-level products. This decrease has been recognised since around October time, with products up to the value of around £3,000, particularly engagement rings, not performing as well as they were previously.

“Despite this, Laings continues to perform strongly overall. For a third of our last financial year, our Cardiff store had yet to be expanded. Now with Cardiff operating at full capacity, we are able to see the return on our investment in the city. And with this, our policy of reinvestment continues, with profits invested back into the business, enabling us to continue our expansion and investment in our stores, our people and craftsmanship.”

Earlier this year Laings signed a 15-year lease to take over the entirety of the historic Rowan House building, having initially occupied the second and third floors as office space, and revealed its intention to transform all five storeys at 68-70 Buchanan Street. The new project will provide workspaces for the jeweller’s growing team of craftspeople and an enhanced retail experience for customers.

Asked to assess how city centres such as Glasgow have recovered from the pandemic, Mr Walsh said: “Undoubtedly city centres have shrunk as a result of Covid. This has particularly impacted Glasgow, which can be seen as St Enoch Centre and Buchanan Galleries are being turned into mixed-use facilities with entertainment and accommodation, instead of solely offering retail.

“Despite this, remaining areas of the city have now become stronger. And as we move into a more branded world, popular brands are taking up more space in high footfall areas such as Buchanan Street. We see this as an opportunity for Laings rather than a drawback, and as a result we are investing in these areas and planning additional store openings within the next two years with our partners. Our significant investment in Rowan House on Buchanan Street is set to be an incredible flagship store, offering an even more unforgettable, luxury experience for all our clients.”

In addition to its plans for Rowan House, Laings recently signed a long lease at 120 Buchanan Street nearby where it plans to operate a flagship Tag Heuer store. It will take possession of the site in January when Diesel vacates. The building was acquired by Buccleuch Property from pensions giant Aegon in a deal worth £4.7m in June.

While Laings currently employs 200 people, it hopes to increase that number to nearly 300 by the end of next year, which Mr Walsh said will be “driven by new store openings and expansions, and our increased investment in workshops.”

He added: “Skilled goldsmith and watchmakers are a limited resource in the United Kingdom. Therefore, we recruit at trainee level, and we are using our existing talented team members to train the next generation in house. We plan to have 60 team members across our workshops in the United Kingdom, growing this by 30 – a large feat of investment in traditional craft which honours the Laings family name and original vision of craft on which the business was founded upon.”

Laings said its priorities for this include talent acquisition and continued staff training and development, with a focus on watchmaking and goldsmithing. Brand collaborations, new partnerships, and one-off events will also be a priority.

Mr Walsh said: “This is a very exciting time for us as a brand and these investments demonstrate our commitment to bringing our clients a luxury retail experience every time they visit. Our turnover growth reinforces the decisions we have made to drive the business forward during a highly challenging few years in the retail industry.”

“We could not have achieved our successes to date, nor plan for future successes, without the skill, expertise, and dedication of our colleagues, who remain at the forefront of our plans to grow the business further. We look forward to bringing our current enhancements to fruition and to further securing our role as an industry-leading, luxury destination across our UK store estate.”