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Build-A-Bear has announced it has lowered its trading expectations for the UK due to “significant” challenges posed by uncertainty around Brexit.
The retailer identified the EU’s GDPR laws as some of the factors causing uncertainty in its UK business. A statement by Build-A-Bear said its “sales decline will be largely isolated in the UK”, with non-US sales expected to decrease by 20% in comparison with last year. Full year revenue for the retailer’s North American operations are also expected to dip by 2% in comparison to the previous year.
Build-A-Bear CEO, Sharon Price John, said: “The shortfall in our year’s results are largely attributed to the persistent and significant revenue and profitability challenges in the UK.”
John added that uncertainty around Brexit had lowered consumer confidence and currency exchange rates. She also said GDPR had “impeded” the company’s marketing communications with declining shopping centre footfall adding to its woes.
The retailer said it now expected sales expectations for the year ending 2 February to be between £261m and £265m, down from a prior forecast of between £265m and £269m.
The company hit the headlines last year after a “pay your age” promotion led to “riots” across the UK.
