Sofa retailer ScS sees orders hit by challenging trade

Sofa chain ScS has revealed second-half orders slumped by 5 per cent as it battled against tougher trading.

But ScS said it was trading in line with the board's expectations. Picture: Alan Watson
But ScS said it was trading in line with the board's expectations. Picture: Alan Watson

The group said the like-for-like decline came as it was hit by more difficult retail conditions and failed to match up to strong sales a year earlier.

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Like-for-like order intake overall in the year to 29 July fell by 0.7 per cent, but the group insisted this was in line with expectations. It said annual like-for-like orders rose 14.3 per cent compared with sales from two years ago.

ScS chief executive David Knight said: “We are pleased that despite the challenging comparatives and wider market backdrop we have traded in line with the board’s expectations for the year.”

The group warned on reporting interim results in March that it faced challenging comparatives and a softening retail market.

It comes after rival DFS recently posted a slump in customer orders and cautioned over “significant declines in store footfall”. DFS will report its latest trading update tomorrow.

Retailers have been flagging up a slowdown in consumer spending as shoppers rein in spending due to soaring inflation.

Fashion chain New Look alerted over “fragile” spending yesterday as it revealed quarterly like-for-like sales had tumbled by 7.5 per cent.

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But independent retail analyst Nick Bubb said the full-year update from ScS was “reassuring”, with the 5 per cent fall in orders over the second half not as steep as feared.