Thursday, March 4, 2021

DFS reports solid sales amid warnings of market slowdown

DFS has posted strong figures in the first half of the year, but warns of an “increased risk” of a market slowdown.

In its 26 week period to January 28, gross sales rose by seven per cent, boosted by its Dwell and Sofa Workshop subsidiaries.

“We recognise that in 2017 the retailing of furniture in the UK faces an increased risk of a market slowdown given the uncertain outlook for consumer confidence,” a spokesperson said.

“However, with its resilient operating model we believe the group remains very well positioned to respond to economic headwinds and cost pressures whilst achieving continued growth in its share of the UK retail furniture market.”

READ MORE: DFS chairman Richard Baker departs

The sofa retailer is reportedly working on securing better deals with suppliers in order to offset the increasing costs due to currency fluctuations, assuring that its full year expectations remain firmly on track.

“We continue our work to actively offset this impact through range management and supplier negotiations, while the differentiated DFS sourcing model of vertical integration, UK manufacturing capability and superior scale remains an important competitive advantage,” it added.

These results come as the retailer searches for a new chairman, following news late last year that Richard Baker will replace Charlie Mayfield as chairman at the British Retail Consortium. 

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