Furniture retailer ScS has opened its 100th UK store and has seen trading return to growth after a tougher period at the end of last year.
The Sunderland-based firm has issued a trading update reporting 2.6% growth over the last 10 weeks, which includes the sector’s key winter sale period. That rise in sales comes after like-for-like orders fell by 9.1% between July and November last year, though the company said those figures were impacted by a tough comparator in the previous year.
ScS also revealed in the update that it was continuing to invest in its operations and expanding its estate, with new stores in York and Swindon taking its number of shops back over the 100 mark. In the stock market note to shareholders the company said its balance sheet remained strong, with cash of £76.9m and no debt. It also highlighted “challenging and unpredictable” economic conditions.
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The company said: “Despite the current economic climate remaining challenging and unpredictable, the board is encouraged by recent order levels.
“We continue to believe that the group’s refreshed strategy, strong cost management and robust balance sheet places it in an excellent financial and operational position. The group remains on track to meet full year market expectations.”
Last month ScS bought fellow furniture brand Snug Shack out of administration in a deal that saved 53 jobs. Snug had won a number of awards for its modular sofa-in-a-box concept and quickly racked up sales of more than £30m, but it fell into administration due to rising costs and adverse economy conditions.
In today’s update, ScS said it was “pleased with the progress made through collaboration with the team at Snug since the acquisition” and said the deal would help progress its group strategy to diversify its customer base and increase market share.
ScS said it expected to announce its interim results on March 21.
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