SCS reports sales slump

Furnishings retailer SCS has reported a fall in like-for-like sales amid “growing political uncertainty”.

In the 17 week period ended 23 November, like-for-like sales fell by 7.1%. Meanwhile, overall like-for-like sales fell by 4% in a two-year period. 

The company said this was an “improvement” on the like-for-like trading in the first nine weeks of the year, where the company reported that like-for-like order intake fell 7.6% for the period between 28 July and 29 September.

In its annual report, published in October, the company said that record temperatures in August had affected its sales during this period, whilst growing uncertainties over Brexit have continued to affect sales in the latest period.

Chairman Alan Smith said: “It is clear that the ongoing economic and political uncertainties are continuing to impact consumer confidence and spending. 

“However, the board is pleased to report that the business is trading in line with our expectations.”

He added: “The group continues to focus on delivering a value proposition with excellent customer service whilst increasing our resilience. 

“This puts us in a strong position to take advantage of opportunities which will add value in the longer term once the economy and consumer confidence improve.”

The company also spoke of political uncertainty in its annual report, saying: “We remain conscious of the impending Brexit deadline, and the impact this may have on the market, consumer confidence and the wider economy. 

“However, the group’s financial health has never been as strong and with our resilient, debt-free balance sheet, we are in a good position to manage the ongoing uncertainty, and furthermore seek opportunities which will add value in the longer term.”

ScS is one of the UK’s largest retailers of upholstered furniture and floorings, and operates from 100 sites across the UK.