Sofa so slow as orders fall

BREXIT BLAMED AS SCS SALES TUMBLE

SOFA chain ScS has seen orders continue to tumble as shopper demand remains under pressure amid Brexit and political uncertainty.

The group reported a 7.1% fall in comparable sales in the 17 weeks to November 23.

However, the Sunderland-based firm – which held its annual shareholder meeting on Wednesday – said this was an improvement on the first nine weeks of its financial year, when comparable orders dropped 7.6%.

ScS is the latest firm to reveal the impact of falling consumer confidence, Topps Tiles reporting on Tuesday demand had taken a big hit in the month since the General Election was called.

Retailers have reported slower sales of big-ticket items, in particular those linked to house sales as property prices stagnate due to uncertainty over the election and Brexit.

Alan Smith, chairman of ScS, said: “It is clear the ongoing economic and political uncertainties are continuing to impact consumer confidence and spending.

“However, the board is pleased to report the business is trading in line with our expectations.

“In the 17 weeks ended November 23. the like-for-like order intake decreased 7.1% and the two-year like-for-like order intake decreased 4.0%.

“This is an improvement on the likefor-like trading for the first nine weeks of the year.”

ScS’s recent sales woes were compounded by warm late summer and early September weather, which dented demand for furniture.

Retail expert Nick Bubb, an independent analyst, said ScS’s recent sales performance “implies the last eight weeks have still been bad for ScS, despite more helpful weather.”

Last month, ScS posted a 5% rise in annual pre-tax profits to £14.3m, likefor-like sales up 4.2%.