NEWS
2020: mixed fortunes for furniture and flooring retail Furniture and lighting retailers saw a double-digit drop in sales in 2020 but flooring retailers reported an annual sales increase last year, despite the pandemic and lockdowns. Office for National Statistics figures tracking the average weekly retail sales of furniture, lighting and household articles (excluding appliances, paint, DIY, glass, and musical, video and audio equipment) showed that sales for the year fell by 12.34%. After a modest increase in January, sales dropped in February and March before lockdown began. Sales in April were less than a quarter of what they had been in 2019. From July onwards the sector enjoyed six months of growth, although performance varied from month to month, with July recording the only double-digit growth. The average weekly sales value for each month were: January £283,013,000 (+1.29%); February £272,167,000 (-7.96%); March £200,657,000 (-26.72%); April £59,972,000 (-78.61%); May £97,590,000 (-64.64%); June £227,587,000 (-16.86%); July £282,508,000 (+14.67%); August £275,722,000 (+2.61%); September £303,893,000 (+4.45%); October £350,149,000 (+8.21%); November £324,724,000 (+2.83%); December £325,104,000 (+7.84%). April and May’s sales figures were the lowest since at least
January 1986, and it was only the third time the average has been below £100m since March 1986. ONS figures for flooring retailers revealed an overall increase of 3.41%, despite stores being closed for long parts of the year. October saw the highest sales since March 2008, and was the fifth highest sales figures since at least January 1986, behind November 1996’s average weekly sales of £59,581,000; November 1995 £58,967,000; November 1997 £58,737,000 and March 2008 £58,081,000. March, April, May and December recorded the lowest sales figures since at least January 1986, when December 2015 had average weekly sales of £22,492,000. The average weekly sales for each month were: January £22,982,000 (-14.03%); February £27,762,000 (-0.45%); March £21,203,000 (-22.5%); April £6,970,000 (-75.83%); May £5,965,000 (-79.23%); June £23,804,000 (-15.15%); July £35,335,000 (+21.46%); August £34,189,000 (+21.33%); September £43,063,000 (+53.28%); October £58,037,000 (+65.34%); November £35,640,000 (-6.34%); December £21,978,000 (-20.22%). The figures do not take inflation into account, with widespread price increases reported since the summer.
Sales leap at DFS and ScS DFS saw sales almost a fifth higher in the second half of 2020, despite store closures and the pandemic. Sales in the 24 weeks to 13 December were up 19%, with online sales 76% higher. Like-for-like orders in the first 11 weeks were down by just 5%. The group also extended
its banking facilities, allowing it to resume paying dividends. The spike in orders last summer has helped ScS to a double-digit sales increase for the past six months. Sales for the 26 weeks to 23 January 2021 increased 13.9% to £182.3m. ‘This increase is due to the significant order intake
growth seen in June and July 2020 following the first lockdown, together with the strong trading in the first quarter of the current financial year. Unlike the first national lockdown, and in line with government guidelines, our distribution centres have remained operational throughout the period and
Covid fine
customers inside, despite the regulations only allowing for home deliveries or collection. It had a warning letter from the council on 7 January and numerous contacts on 7 and 8 January to provide advice on how to operate in line with government guidance. ‘There is no excuse for blatant disregard of the rules. We’re not talking about genuine mistakes here, but
deliberate breaches of the rules. There is simply no excuse for any business to be breaking the rules and we will not hesitate to fine and close down any establishment that puts public safety at risk. Businesses must put the safety of their staff and customers first,’ says Cllr Steve Evans, City of Wolverhampton Council’s cabinet member for city environment.
Wolverhampton flooring retailer Mayfair Carpets, in the city’s Park Lane, Fallings Park, was fined £1,000 and issued with a prohibition notice for continuing to operate during lockdown. City of Wolverhampton Council officers visited the premises on 9 January and found that it was letting
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Interiors Monthly February 2021
continue to deliver goods to our customers,’ says the chain. As of 23 January, its order book is £90.5m (including VAT), £16.8m higher than a year ago. Due to increased restrictions across the UK, the chain began its winter sale with 57 of its 100 stores trading on Boxing Day. Following further restrictions, 37 stores then closed on 30 December, with the remaining 20 closing on 4 January. ‘The group's online sales channel continues to make good progress, with the half year seeing an increase in order intake of 98% when compared to the same period in the prior year,’ it says. ScS ended the period with cash of £91.8m, plus access to banking facilities of £20m.
