MFI tackling sales slip
Furniture retailer hit by competition
MFI is launching new product ranges and has shaken up senior managment roles following a sharp decline in orders in an increasingly competitive UK furniture market.
From Boxing Day to May 15, total UK retail orders are down by 6 per cent and same store orders down by 7 per cent.
Total group orders are up by 3 per cent, and up 1 per cent on a same store basis, driven by strong growth in both Howden Joinery trade business and MFI’s Hygena Cuisines retail operation in France.
MFI said a three-week Easter promotion in its UK retail outlets generated weaker sales than expected, with the business affected by ‘higher than anticipated competitor spend’ on advertising. Orders for bed and bathroom ranges in out-of-town stores have also continued to be ‘challenging’. New product ranges have been developed in these areas, arriving in stores this month.
Howden Joinery has seen total orders increase by 25 per cent, while Hygena has seen a 27 per cent total increase, with store orders in local currency up by 16 per cent.
MFI has also announced several changes in senior management responsibilities under chief executive John Hancock, following an internal review.
[img r]mfikitchen.jpg[/img]Gordon MacDonald, group categories and manufacturing director, is taking overall responsibility for each product category while Bob Wilson becomes kitchens category director, a key product area for the group as a whole.
Mark Horgan, retail executive director, will focus on commercial strategy, trading, marketing and financial services, as well as over responsibility for retail businesses in France and Taiwan. A new UK role, retail operations director will see Steve Walker focus on out-of-town stores.
