Coronavirus: ScS mulls store closures

3644
ScS covid-19 consumer confidence trading update
ScS said it remains “mindful of the developing situation with the coronavirus”
// ScS profit increased 0.3% to £71.7m in the 26 weeks to January 25
// Gross sales rose 0.5% to £160.1m
// The furniture retailer said it is considering temporarily closing stores amid the coronavirus outbreak

ScS has seen an increase in its half-year profit and gross sales, despite consumer confidence being at its lowest thanks to the coronavirus pandemic.

In the 26 weeks to January 25, the furniture retailer reported a 0.3 per cent increase in profit to £71.7 million.

Gross sales rose by a mere 0.5 per cent to £160.1 million, while underlying EBITDA increased from £400,000 to £3.8 million.


READ MORE:


Despite the sales rise, ScS said it remains “mindful of the developing situation with the coronavirus” and its potential impact on demand and deliveries.

ScS said it might need to consider closing its stores amid the outbreak, which would lead to “lower orders” while the potential closure of a distribution centre would also delay deliveries.

In the first six months of the financial year, it had driven like-for-like order intake down and invested in its online channel, which saw online sales increase by 24.5 per cent to £9.8 million.

Scs also said it had a strong balance sheet with £61.5 million in cash and underlying operating profits of £1.7 million.

In the first seven weeks of the year, the retailer saw orders increase by 3.3 per cent.

“Whilst consumer confidence remains low, the group has been successful in sustaining profitable growth and increasing its resilience,” ScS chief executive David Knight said.

“Trading in the early part of the year was particularly challenging. However, the improvement and return to growth seen over the key winter sales period and for the first six weeks of the second half was encouraging.

“In the past week we have seen reduced footfall and we are mindful of the developing situation with Covid-19 and the potential impact on deliveries and demand.

“However, we believe the group is as well positioned as it can be.

“We continue to focus on providing excellent value, quality and choice for our customers, and are committed to our strategy.

“We remain confident in the future success of the group.”

Click here to sign up to Retail Gazette’s free daily email newsletter

6 COMMENTS

  1. Who on earth is going to be splashing out on unnecessary big purchase like carpets and furniture with so much uncertainty, people loosing there jobs etc I am surprised these shops weren’t the first to close

  2. We have been waiting nearly 12 weeks for our delivery we talk to scs on web chat they said still delivering our order around 27 th of April .. we are ones who have been told to isolate as we are in age group 66+. and vulnerable

  3. I’m shocked that people are complaining!

    I’m vunerable due to having asthma and two babies in the house, yet my husband is still having to go to work at SCS (and he’s happy to do so) to deal with customer giving him grief over their sofas not being delivered!

    What do you expect them to do? Countries are on lockdown. Transport and delivery is obviously affected through no fault of their own.

    In the meantime I just have to hope that none of my husband’s customers give him the virus to bring home.

    I for one will be glad if it shuts and we all manage to stay alive, on the floor or not!

  4. Can you cancel your suite which was ordered in January if you think you can’t afford it now due to the virus and not working

LEAVE A REPLY

Please enter your comment!
Please enter your name here