Furniture firm bounces back after sales drop

Sunderland furniture giant ScS saw orders plummet by more than 90% during lockdown.

But the firm has seen business bounce back, with a massive upsurge in orders since stores reopened.

The company issued a trading update for the 52 weeks ended July 25 today, ahead of announcing its preliminary results on September 29. It delayed an announcement of interim results in March.

Today’s statement says a challenging autumn was followed by improved trading over the winter.

But the group saw a sharp downturn following the mandatory closure of stores in March 23, with order intake down 92.5% on the same period last year, despite a “significant” increase in online orders lockdown.

“Encouragingly, post-lockdown trading has been very strong both in-store and online, with group order intake increasing 92.2% when compared to the same period in the prior year,” says today’s statement.

“This reflects pent up demand, which has been supported by our well executed re-opening plans, our continued focus on value and customer service, and our increased investment in targeted marketing over the last two months.”

Delivered sales for the year to July 25 were £268million, compared to £333million in the previous year. The firm says the reduction was driven by the temporary closure from late March to late May of its distribution network and manufacturing partners.

“ScS is a resilient business, with a strong balance sheet, coupled with a flexible cost base, and is well positioned to navigate these difficult circumstances.”