// Studio sales increase during lockdown period
// Sales of toys, games, electricals, fitness, and garden goods were popular
Studio has seen its sales jump by 55 per cent over the past 11 weeks as shops remained closed due to the coronavirus lockdown.
The sales were driven by demand for toys, games, electricals, fitness, and garden goods, rather than fashion.
The online discounter also reported that the number of active customers had increased to two million.
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“Studio’s multi-year transformation to become a digital value retailer means we have been well-placed to adapt to the current environment,” Studio chief executive Phil Maudsley said.
”The overall market does remain volatile, and we are cautious about the risks to customer incomes for the remainder of the year,” he said.
“However, we have positioned ourselves strongly to manage these risks, and longer term, we are well-positioned to respond to any permanent shifts in online consumer behaviour.”
In April, Studio withdrew a revolving credit facility (RCF) of £85 million and a securitisation facility of £200 million to ensure it has sufficient liquidity for its near-term requirements during the Covid-19 crisis.
The RCF was fully drawn on March 27, resulting in net debt of £53 million or cash on balance sheet of £32 million.
Studio said the headroom is a £5 million improvement than it would otherwise have expected to see due to “a particularly cautious approach to cash outflows in the week following the lockdown announcement, which has since been reversed”.
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