Sofa retailer grows store footprint and sales

Sofa retailer Sofology, part of the DFS Group, has reported a growth in sales, while the Spanish arm of DFS experienced widening losses ahead of its closure.

According to latest filed accounts to 26 June 2022, Sofology gross sales rose 13.2% to £304.9m from £269.2m in 2021. Pre-tax profit resulted at £7m, down from £13.3m recorded in the previous year.

The company said it has made progress increasing the number of stores, with seven new openings during the year in Orpington, Glasgow, Poole, Ipswich, New Malden, Birmingham and Bristol, while two stores closed. This resulted in a total of 55 stores at the year end.

“We continue to see the opportunity to grow the Sofology brand to 65-70 stores in the medium-term,” the company added.

Meanwhile, DFS’ Spanish division, which has now ceased operations, sales within this segment for the year resulted at £3.3m, up 37% from £2.4m. However, pre-tax losses widened from £2.4m to a loss of £3.4m.

DFS closed its leased showrooms and warehouses in the country after taking the decision to exit its operations in Spain. DFS has also closed its Netherlands business too.

“The closure of both the Netherlands and Spain businesses, as announced in March 2022, and presentation as discontinued operations, saw a total loss for the period for discontinued operations at £12.8m”, DFS said.

Read DFS’ recent half year trading update.

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