A UK furniture retailer has reported a significant downturn in performance, highlighting the ongoing pressures facing the sector. Falling consumer demand and intense market competition have compounded the challenges, leading to a sharp financial reversal.
© Swoon
The company, Swoon, disclosed that sales for the year ending 31 December 2024 fell 15.5% to £10.3m, compared with £12.2m the previous year. Pre-tax losses reached £844,000, a stark shift from the £188,000 profit posted in 2023.
Operating both direct-to-consumer and through retail partnerships, Swoon cited persistent cost-of-living pressures that have driven consumers to delay or reduce spending. It noted that "increased promotional activity across the furniture market" further eroded revenues despite an improvement in gross margins from 56% to 57%.
The company acknowledged that the tough market conditions led to a "significant drop in turnover" and operating losses, though better margins point to operational efficiencies that may help stabilise future performance.
Source: www.bigfurnituregroup.com
