ScS says it is well-placed to take advantage of opportunities that emerge as a result of economic uncertainty surrounding Brexit.
The update came two days after ScS confirmed that it was in discussions to buy the business and assets of Sofa.com Limited although, it said, there could as yet be no certainty on the outcome. Sofa.com sells online and from nine showrooms in cities from London to Bath and Glasgow. [UPDATE: Since this was published, it has been reported that Mike Ashley’s Sports Direct has now bought Sofa.com. while ScS has confirmed it is no longer in talks to buy the online retailer.]
It also came as ScS , ranked Top500 in IRUK Top500 research, today reported sales in line with expectations in the first half of its financial year. That comes despite the decision to close all of the 27 concessions that it previously ran from branches of House of Fraser.
Like-for-like orders grew by 1.5% over the 26 weeks to January 2019. The furniture and floorings business said that trading over the winter sales period was also in line with expectations. Two-year like-for-like sales figures show orders up by 4.5%.
“Whilst we are mindful of the risk from the impending Brexit outcome, we believe the group’s increasing resilience puts the business in a strong position to manage the continued economic uncertainty and take advantage of opportunities,” it said in today’s trading update.
ScS took the decision to close its House of Fraser concessions back in October, after the sales it made through its presence there halved in the first quarter of its financial year. In the previous full-year, to July 28, House of Fraser sales had accounted for 7.1% of ScS’ total sales. In the 12 weeks to October 20, those sales accounted for just 2.7% of ScS orders. But falling sales from the department store concessions were compensated for as online sales grew.
ScS first started to operate within House of Fraser stores in 2014, with the intention of putting its gods before those who prefer to buy on the high street or in department stores.