Furniture and flooring chain Sterling has after losses reached almost £4m in the face of an almost double-digit sale fall.
The retailer saw like for like sales drop by 9.6% in the year to 31 August 2024 to £50.5m with a pre-tax loss of £3.96m compared with a £43,870 profit [the previous period was 18 months, which generated sales of £83.6m].
‘The financial outcome in FY24 reflects legacy decisions and over investment in anticipation of growth that did not materialise. Under the stewardship of the new executive team, FY25 is being used to address those positions, reduce operational costs (whilst continuing existing support to retail sales) and refocus the business. The board’s intention is to return the group to profitability in FY26,’ it says.
‘The business has a proud history as one of Scotland’s most recognisable home furnishing brands. As the group looks to the future, there has been a renewed focus on the core values and standards that have underpinned its historic success. Recent changes in leadership have brought greater clarity and consistency to the group’s strategy and operations. This refocus on the company’s founding principles – customer care, commercial discipline, and long-term stewardship – will stand the business in good stead as it seeks to modernise, grow, and recapture its former strengths.’
The chain’s previous management team, lead by John Pattison, had ambitious expansion plans across more than one brand, including the opening of a store near Glasgow airport – which is now being developed by Furniture Village.
