Simba reaches £100m sales in “exhausting year”

Simba trading update Steve Reid
Total digital sales grew by 65% in 2020
// Simba hails “strong trading” in 2020 thanks to £100m sales
// Like for like sales rose 160% year on year during Black Friday and Cyber Monday
// In the 2 weeks to January 3, 2021, Simba recorded a 400% rise in Christmas and New Year like for like sales

Simba has reported “strong trading” in 2020 and remains confident for this year after sales hit £100 million.

The mattress retailer said its Black Friday and Cyber Monday four-day weekend like for like sales rose 160 per cent year on year.

In the two weeks to January 3, 2021, Simba recorded a 400 per cent rise in its Christmas and New Year like for like sales.

READ MORE: Simba offers 50% discounts on mattresses for NHS & private healthcare workers

Simba also delivered £3 million EBITDA profit during the period.

Total digital sales grew by 65 per cent in 2020, which accounted for 97 per cent of total sales compared to 84 per cent in 2019.

Simba said it achieved record sales throughout the last three quarters including sales growth of 35 per cent in the second quarter, 70 per cent in the third quarter, and 125 per cent in the fourth quarter.

The retailer said it had joined the BRC’s Climate Roadmap initiative in the fourth quarter, aiming to become net zero contributor to greenhouse emissions.

“Like many businesses reacting to the Covid-19 crisis, our first priority was our team, both internally, and across our supply chain and distribution partners; ensuring their safety whilst we put plans in place to continue to trade responsibly,” Simba chief executive Steve Reid said.

“In what has been an exhausting whilst exhilarating year, thanks to the unwavering support and hard work of the team, our now leaner ecommerce focused business model puts us in a position to deliver what we expect to be double digit EBITDA in coming years.

“Simba has delivered a remarkable turnaround in the last 18 months. The firm has moved from making a significant loss, to a business that is now consistently profitable, whilst delivering all time high revenues throughout 2020 despite the challenges of a global pandemic.

“To have swung a bottom line loss and to be up above historic high revenues in just a year and a half is testament to the team here at Simba and our partners – which we are eternally grateful for.

“Data from our consumer sleep app reveals people have really wrestled with their sleep during the pandemic, so this upturn could be a reflection of people searching for self-care solutions at a time when anxiety around Covid-19 is causing a plethora of sleep issues.

“Since launch there has been speculation surrounding the online mattress business model, but this year has proved it can weather even the heaviest of storms.

“Sustained sales growth throughout 2020 has crucially been underpinned with continued profitability, validating that it’s not only robust, but sustainable.

“Four years on, both the business and sector have matured exponentially – rooted in genuine product innovation and consistently evaluating and evolving business practices.”

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