Dobbies Nears Breakeven as Restructuring Drives Sales Recovery

Dobbies Garden Centres has reported a significant improvement in its underlying performance following the restructuring of the business, with like-for-like sales increasing and losses narrowing during the year to 1 March 2026.

The UK garden centre group, which now operates from a streamlined estate of 53 stores, reported like-for-like sales of £221m, up from £201m in the previous year. Total sales were £257m, including contributions from the 24 stores closed as part of the restructuring programme.

The improved sales performance was supported by increased customer footfall and a higher average transaction value, while margins improved by two percentage points.

Dobbies also reported a 16% increase in concession income to £9.9m, while the rollout of its new foodhall proposition across the remaining estate has performed ahead of expectations.

Despite the operational improvements, the business remained loss-making during the period. The statutory loss from continuing operations reduced to £36.3m, compared with £40.5m in the previous year.

However, the improvement at EBITDA level was considerably stronger. Dobbies reported EBITDA of £0.5m, effectively reaching breakeven, compared with a £7.8m loss in the previous year.

The latest results follow the major restructuring undertaken by Dobbies during 2024 and 2025, which addressed a number of historically unsustainable property commitments across the estate.

The restructuring plan, approved by the Court of Session in Scotland at the end of 2024, enabled the retailer to exit leases on 24 over-rented and loss-making stores and secure rent concessions on a further two locations.

The business subsequently emerged with a 53-store estate and a £28m working capital facility to support investment and its return to sustainable profitability.

Since then, Dobbies has focused on improving stock availability, strengthening supplier relationships, developing its restaurant and foodhall propositions and investing in its remaining stores.

Chief Financial Officer Pete Templeton confirmed that the business was not yet generating cash during the reported period, although trading has continued to improve during the current financial year.

The results provide the clearest evidence yet that the restructuring is beginning to deliver a more sustainable operating platform for the UK’s largest garden centre operator, although returning the business to consistent profitability and positive cash generation remains the next major milestone.

The latest figures follow a difficult period for Dobbies, which has undergone one of the most significant restructurings in the UK garden centre sector in recent years.

Source: Gardenforum / Dobbies Garden Centres