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Expert View
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The revelation that Danish furniture specialist ILVA is to withdraw from the UK comes as no real surprise. Since its launch, ILVA has struggled to gain a foothold in the market, making a loss before it even opened its doors. The torrid trading conditions affecting all big-ticket retailers appear to have hammered home the final nail in the coffin, accelerating ILVA's inevitable demise.
Published By Datamonitor
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27 Jun 2008 |
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CommentWire
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Furniture retailer ScS has paid the price for a terrible year's trading, with shareholders receiving nothing from the chain's purchase by private equity group Sun European partners. The retailer's spectacular collapse is yet another indicator of the severity of the downturn in consumer spending for big-ticket retailers, and the new owners face a huge uphill task if they are to turn things around.
Published By Datamonitor
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03 Jul 2008 |
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CommentWire
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Following seven consecutive quarters of growth, and against strong comparatives, underlying sales at Dunelm fell by 2.4% in Q4. Nevertheless, for the full year, like-for-like sales increased by 2.5%, while total sales rose by 10.5%. Although Dunelm seems to be defying the downturn, it is not immune to current conditions, and continuing to produce like-for-like uplifts will prove challenging.
Published By Datamonitor
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08 Jul 2008 |
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Expert View
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Floors-2-Go has entered administration, becoming the latest victim of the consumer downturn. After struggling against the expansion of the non-specialists and the extremely hostile trading conditions facing big ticket retailers, particularly those related to the housing market, Floors-2-Go has become the 35th retailer, and the 12th housing-related retailer, to succumb to the pressure this year.
Published By Datamonitor
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23 Jul 2008 |
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CommentWire
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United Carpets has reported sales of GBP21.2 million and pre tax profits of GBP1.5 million for the fiscal year ending 31 March 2008, representing growth on last year of 8.3% and 46.8% respectively. While it is currently performing well, United Carpets may find achieving a similar performance harder over the next 12 months.
Published By Datamonitor
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24 Jul 2008 |
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CommentWire
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Following deteriorating performance, Merchant Equity Partners is reviewing strategic options for furniture retailer MFI and it is thought that merger talks have been held with several parties. Such consolidation is testament to the current challenging trading environment, and as conditions are unlikely to improve in the near term, this is unlikely to be the only merger in the next 12 months.
Published By Datamonitor
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08 Sep 2008 |
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Expert View
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Dunelm's full year results show that its performance is strong enough to keep its ambitious expansion and refurbishment plans on track, despite tough conditions. Driven by range and store improvements, debt reductions and enhancements to efficiency, the results are a strong showing in a difficult year, leaving the retailer well-placed to cope with conditions that look set to deteriorate further.
Published By Datamonitor
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11 Sep 2008 |
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CommentWire
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The Home Retail Group has announced a deterioration of sales at Argos, and a slightly improved but still disappointing performance at Homebase. This leaves the group relying heavily on what is expected to be a challenging final quarter in order to make a profit. However, its financial strength and tight cost control should leave it well positioned to meet profit expectations.
Published By Datamonitor
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12 Sep 2008 |
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CommentWire
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John Lewis, last year's shining star and barometer of UK consumer confidence, is feeling the pinch as consumers rein in discretionary spending. While sales of clothing and beauty have been resilient, homewares has taken a sharp knock, and operating profits have tumbled as the retailer campaigns harder on value against a backdrop of rising costs and muted consumer expenditure.
Published By Datamonitor
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15 Sep 2008 |
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Expert View
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Woolworths' new CEO, Steve Johnson, has outlined a strategy for turning the ailing retailer's fortunes around by focusing on the customer, store disciplines, product availability and value perceptions, while also simplifying the business. While these initiatives are essential to put the business on a stable footing, they may only prolong Woolworths' survival, rather than ensure its future.
Published By Datamonitor
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17 Sep 2008 |
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