ScS impacted by drop in store footfall
ScS has said its two-year like-for-like order growth was 0.9% for the 16 weeks to 20 November, but the furniture retailer has seen a reduction in store footfall and conversion over the last seven weeks with consumers spending less on big ticket items.
In a trading statement ahead of its AGM today, the company said it experienced a like-for-like order decline of 10.6% on a one-year basis following an unprecedented period of pent-up demand at the beginning of the prior year.
SCS said the reduction in store footfall and conversion has been driven by a change in behaviour with consumers shopping earlier for Christmas when compared with previous years. The company is also being impacted by extended product lead times currently being experienced across the furniture sector.
At 20 November 2021, ScS’s order book stood at £131.9 million, which was £71.5 million higher than the same point two years ago. The company said its online business continues to perform well, with two-year like-for-like order growth for the first 16 weeks of the year standing at 38.5%.
Looking ahead, ScS said: “The group is now preparing for the winter sales trading period, and whilst it remains difficult to predict shopping habits and consumer engagement, the business is planning to approach this key period in a manner consistent with that which has proven successful in previous years.
“We believe our continued focus on a promotional, value-led proposition will remain attractive to our target market and the Board looks forward to the future with continued confidence.”
The company said it is continuing to work with existing suppliers to mitigate current supply chain challenges and has recently partnered with new UK suppliers to enable it to offer furniture on shorter lead times.
