ScS orders hit by fall in ‘big ticket’ purchases

ScS has seen a decline in orders in recent weeks, with a one-year like-for-like order decline of 10.6% following an “unprecedented” period of pent-up demand at the beginning of the prior year.

While the group started the year strong, with a two year like-for-like order intake growth for the first nine weeks, store footfall and conversion has fallen over the last seven weeks, largely due to customers spending less on “big ticket” purchases. 

According to the retailer, this was in part driven by customers shopping earlier for Christmas gifts when compared with previous years. 

It added that the extended product lead times currently reported across the furniture and wider retail industry are also having an impact on current purchasing trends.

Nonetheless, the furniture retailer welcomed a total two-year like-for-like order growth of 0.9% for the 16 weeks ending 20 November 2021. 

As of 20 November 2021, its order book was also £71.5m above the same point two years ago at £131.9m. 

In addition, it said its online business has continued to perform well in recent weeks, with a two-year like-for-like order growth for the first 16 weeks of the year of 38.5%.

Looking ahead, the group said it will approach the key winter sales trading period in a “manner consistent with that which has proven successful in previous years”. 

It added it will work closely with its existing suppliers to help mitigate the current challenges seen across the supply chain. To help with the supply chain crisis, it has recently partnered with new UK suppliers in order to offer furniture on shorter lead times, for example.