Sofa seller ScS: Shoppers may splurge on home makeovers instead of moving amid high mortgage rates
Sofa seller ScS has suggested that some consumers may invest in home makeovers instead of opting to move house amid historically high mortgage rates.
The furniture firm posted record sales growth on Tuesday morning but warned of “subdued” trading in recent weeks against a backdrop of household bills increasing.
Revenue rose 8.6 per cent from £305.2m to £331.6m, ScS said in full-year results. Sales were up eight per cent from £319.2m to £344.7m.
ScS’s chief executive officer, Steve Carson, told CityA.M. that some Brits who are “put off” moving homes due to increased mortgage costs may instead invest in new floors and furniture.
However, he added that it was still “very early” to identify any particular consumer trends in the wake of Chancellor Kwasi Kwarteng’s mini-budget.
Sofas were items that consumers “take some time to consider” buying and at the moment it was “impossible to tell” the full impact of macroeconomic pressures on shoppers, Carson said.
The furniture chain boss said ScS was “confident in the longer term growth prospects of the business,” despite warning that the coming months were expected to be “challenging.”
It comes as the latest consumer spending data from the British Retail Consortium (BRC) revealed that shoppers have continued to pare down purchases of large ticket items, including TVs and furniture.
Elsewhere, online retailer Made.com has been searching for a rescue takeover deal after suffering heavy losses due to consumers pulling back from spending on homeware.