Difficult conditions impact independent furniture retailer

Unbiased furnishings retailer Barker and Stonehouse has reported a decline in turnover as gross sales fell beneath £80m.

In accordance with its newest filed accounts for the yr ended 31 March 2024, whole gross sales fell 17.3% to £78.4m from £94.8m in 2023.

Pre-tax revenue resulted at £703,000, down from £3m recorded within the earlier yr.

Said inside its report, Barker and Stonehouse stated that the discount in gross sales was as a result of full impact of publish Covid tapering, the cost-of-living disaster and the rise in rates of interest that impacted disposable incomes.

“While the margin elevated to 46.5%, this was nonetheless underneath the long-term common,” the corporate added. “Revenue earlier than tax decreased as a result of vital drop in turnover reflecting the troublesome buying and selling situations.”

The corporate opened a brand new standalone retailer on the Metro Centre in Gateshead throughout April 2023, whereas its new web site, launched in October 2022, is now “buying and selling effectively”.

“In July 2024, the corporate offered its Newcastle metropolis centre retailer for over £5m being a revenue of over £3m. The corporate then additional consolidated its enterprise association with Fenwick Ltd and doubled the floorspace at Fenwick Newcastle within the Autumn of 2024.

“The corporate is buying and selling profitably because the yr finish with an elevated turnover and gross margin.”