Furniture and flooring sales climb again

Furniture and flooring sales rose in November

According to the Office of National Statistics’ first estimate of November’s retail sales, furniture and flooring sales rose in November, higher than October 2021, November 2020 and November 2019.

The furniture and lighting sector in England, Wales and Scotland saw sales rise 0.88% compared with October. This compared with a monthly fall of 5.99% in October.

Average weekly sales were £325,755,000.

Compared with November 2020, sales were up 7.77%, and compared with November 2019, sales were 3.15% higher.

To put the monthly performance into perspective, it was the fourth best month (of 431) since January 1986. Weekly sales have averaged £198,115,000 in the interim.

For the year to date (January to November 2021), furniture and lighting sales were 17.73% higher than the same period in 2020 and 0.29% higher than 2019.

The flooring sector saw sales rise 4.48% compared with October. This compared with a monthly fall of 9% in October.

Average weekly sales were £43,071,000.

November was the fourth-best month for trading in 35 years

Compared with November 2020, sales were up 136.7%, and compared with November 2019, 13.18% higher.

November was the 265th best month since January 1986. Since then, average weekly sales have averaged £40,452,000.

For the year to date (January to November), flooring sales were 24.78% higher than 2020 and 11.25% higher than 2019.

The latest figures are subject to revision by ONS.

ScS warns of changing consumer trends Valley deal

ScS has warned of lower shopper numbers and orders.

At the end of November the chain cautioned its shareholders: ‘Over the last seven weeks, the group has seen a reduction in store footfall and conversion, with consumers spending less on big-ticket discretionary purchases. This appears to be driven by a change in behaviour, with consumers shopping earlier for Christmas when compared with previous years. The extended product lead times currently being experienced across the furniture and wider retail industry are also having an impact on purchasing trends.’

Shareholders took fright, sending the share price down by more than 12%.

Two-year like-for-like order growth for the 16 weeks to 20 November was 0.9%, 10.6% down on 2020.

The group's order book was £131.9m at 20 November, £71.5m above the same point two years ago. Online sales were 38.5% higher than 2019.

Sterling profits jump despite lockdown challenge

Sterling Furniture Group saw profits leap in the past year, despite lockdown store closures hitting turnover.

Pre-tax profits leapt from £338,639 to £2.526m in the year to 28 February. Sales dropped by 27% to £40m.

‘Despite the difficulties and challenges brought about by the pandemic, the group continued its strategy,’ says the company. ‘During the year the group invested in the refurbishment and conversion of its Thomson's store in Dunfermline to the new-concept “Sterling Home” format store. This store has traded well since reopening.

‘The pandemic has had a significant impact on the business over the year. The group was forced to review its operations and find savings and change processes to adapt to the changing circumstances.’ Flooring distributor Likewise has agreed to buy rival Valley Wholesale Carpets for £30m.

Founded in 1982, Valley has a strong presence in the south-east of England and the Midlands, with two main distribution centres in Erith and Derby. It had sales of £47.3m in the year ended 30 September, up 32%, and EBITDA of £5.7m, up 89%.

Likewise says the deal is expected to deliver around 25% earnings enhancement during the first full year of ownership.

It raised about £14m to help fund the deal by issuing 40million new shares. Directors bought £280,000 worth and shareholder directors saw their holding reduced from 28.4% to 23.3%.

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