New DFS stores cushion profits blow

Sofa retailer DFS suffered a fall in profits today but vowed to press ahead with its store opening programme, leaving it on track to create 500 jobs this year.

The group – which operates 84 stores, including six stores in Scotland – said underlying profits fell 31 per cent to £28.3 million in the 26 weeks to 28 January.

Sales were down 10 per cent as consumers cut back on making major purchases, although there was an improvement in the second quarter and it is hopeful this trend will continue.

The group opened eight stores in the half year and said it is on track for at least four more by the end of its financial year, including its first outside the UK, in Dublin.

This, combined with recent moves to increase production at factories in Carcroft in south Yorkshire and at Long Eaton in Derbyshire, leaves it on course to create 500 jobs.

It has so far opened sites at Huddersfield, High Wycombe, Hereford, Colne, Old Kent Road in London, Brentford, Lincoln and Llantrisant.