NEWS

AIS PREPARES FOR WINTER SHOW

INDX Furniture is preparing to return to Cranmore Park, Shirley, from 20th-23rd January, and visitor registration is open now at www.indxshows.co.uk/ indx-home/furniture/registration.

The exhibition, which is organised by leading UK buying group Associated Independent Stores (AIS), promises to showcase an expertly edited product selection, and – aside from the first show day, which is reserved for AIS members – will again be open to the general trade.

ADMINISTRATORS APPOINTED AT EVE SLEEP

D2C sleep wellness brand eve Sleep went into administration last month. On 6th June, eve’s board commenced a review of the company’s strategic and financing options, with a view to delivering additional funding, conducted under the auspices of a formal sale process. A number of indicative offers were received, yet, says eve, discussions with respect to a sale of the company or in relation to an equity or other such fundraising transaction were not successful.

In order to “preserve value for creditors”, the board therefore signalled the appointment of Matthew Ingram and James Saunders of Kroll Advisory as joint administrators.

CEO Cheryl Calverley says: “Having seen the year start so brightly, with the efforts of the team over the past three years in rebuilding eve into a business fit for profitable growth coming to fruition, the frustration at the unprecedented downturn in the market over February and March was felt all the more keenly. Despite monumental efforts to restructure the business and reshape the cost base, the scale of eve was simply insufficient to withstand the economic tsunami that has gathered momentum over the past six months, and allow it to continue as an independent business. Whilst it may be scant succor in the face of the current situation, we have moved heaven and earth to seek a way forward as an independent or acquired business, but ultimately prevailing market conditions just do not support that.”

Bensons for Beds subsequently purchased the eve Sleep brand, website and related assets. It says it intends to retain eve Sleep as a standalone brand, and that the move will widen Bensons’ appeal with “a different demographic of younger consumers”.

IKEA SEES GROWTH AS CONSUMERS FEEL THE PINCH

Inter IKEA Group has shared the IKEA retail sales for FY22, ended 31st August.Total IKEA retail sales amounted to €44.6b, a YoY increase of +6.5% (+3.5% when adjusted for currency impact), as rising inflation and squeezed consumer purses drove more customers to shop from the value brand.

“This year’s challenges continue to give us perspective into people’s life at home, our business and our priorities,” says Inter IKEA Group CEO, Jon Abrahamsson Ring. “Homes now fulfil more functions and solve more problems than ever before. That means people need home furnishings and solutions at an affordable price.”

IKEA store sales grew by +13% compared to FY21, when many stores were closed due to the pandemic. Overall, the stores welcomed 822 million visitors in FY22 compared to 775 million in FY21, says the retailer.

Store sales in FY22 grew mainly in Europe, where FY21 lockdowns were most severe. At the same time, online sales were -10% lower YoY, though they stabilised at a higher level this spring. IKEA’s online channels hosted 4.3 billion visitors, down from 5 billion last year.

The retailer says the pandemic limited growth in FY21, and that IKEA retail sales benefited as the world reopened. On the other hand, inflation and supply chain issues impacted FY22 sales, and led to rising costs and higher prices. That means sales have grown in value, but sales volumes have not kept up. In addition, supply chain shortages made it difficult to keep the shelves full.

“IKEA prices remained relatively stable for several years,” Jon continues. “That gave us an advantage when competitors raised prices early in the pandemic.

“Unfortunately, we can’t ignore surging raw material and transport costs. Long term, we remain committed to affordability for the many people around the world.”

The continuing war in Ukraine has also affected IKEA’s customers and the business. IKEA continues to scale down its presence in Russia, with “full consideration” for the many co-workers, partners and suppliers there. In contrast to these scaleddown activities, IKEA opened retail operations in new markets, including the first IKEA store and online channel in South America. In total, 38 new IKEA sales locations opened around the world in FY22.

Furniture Village’s

commercial director Charlie Harrison has been presented with a Next Generation Award by Family Business United. The award recognises members of the next generation who have made significant contributions to their own family business

The BFM has issued a warning over the availability of foam used in upholstered furniture and mattresses. The trade body says TDI chemical shortages pose a threat to the supply of foam across Europe throughout autumn, so retailers and customers should be prepared for delays

Dreams, together with its luxury brand Feather and Black, has returned to Taunton after a 10year absence. The store, on Riverside Retail Park, created five new jobs

IKEA and Tesco are trialling an expanded Collect Near You service in Blackburn, giving customers the option to collect their IKEA order from their local Tesco car park. Six more Collect Near You points are planned this year – in Doncaster, Dereham, Stockport, Bolton, Liverpool, and Cambridge

Fowler & Co’s founder Ben Fowler, a freeman of The Furniture Makers’ Company, has raised £1766 for the charity by rowing 22 miles of the River Thames in this year’s Great River Race (the Queen Elizabeth Memorial Pageant)

The Furniture Makers’

Company’s Northern Big Shots event, which took place in September, raised £8000 for the charity

The BFM has partnered with sustainability and net-zero group Planet Mark to help its members and the national furniture industry meet its netzero goals

The Belfield Group,

whose brands include Westbridge and Tetrad, has appointed Rachael Nevins as CEO, replacing Gary Lasham

XXXLutz KG of Austria has commenced plans to acquire leading European ecommerce platform home24 SE. It plans to retain the business’ existing structure, management team, HQ and brands

French Bedroom

(formerly The French Bedroom Company) received the Gold Tier Award for Best eCommerce Customer Service at this year’s eCommerce Awards

Sleep.8 has opened a newly upsized and refurbished flagship store at 362-368 King’s Road, Chelsea. The technology-led smart sleep brand now occupies a 2950ft2 space

ScS has joined the Furniture & Home Improvement Ombudsman (FHIO), signalling its commitment to raising customer service standards

Barclaycard Payments

says that, 200 days on from the mandatory introduction of Strong Customer Authentication (SCA), non-compliant businesses are missing out on sales totalling £2.07m every day

THE FURNITURE AWARDS RETURN

Each year, The Furniture Awards are bestowed upon the January Furniture Show’s most inspiring suppliers – exhibitors leading the way in everything from eco-friendly achievement to daring design.

In 2023, Furniture News and January Furniture Show will deliver the eighth edition of this prestigious programme, and exhibiting suppliers are invited to apply online in one of five categories: Sustainability; Best of British; Design Innovation; Global Player; and a new category, Superior Service. The entrants will be shortlisted and assessed by an expert judging panel chaired by Furniture News’ Paul Farley. The finalists will be announced ahead of the show, and the winners revealed on-site.

“Each year, The Furniture Awards celebrate some of the best our industry has to offer,” says Paul. “Given the ongoing challenges the trade faces, I’m particularly eager to discover which suppliers are setting the pace, and how they’re doing it.”

Last year’s winners were: Signature Kauri (Sustainability); Shire Beds (Best of British); Gallery Direct (Design Innovation); and Bluebone Imports (Global Player). “We heard some great stories of adaptability and long-term strategy from last year’s entrants,” Paul adds. “Why not share yours?”

The January Furniture Show is returning to its traditional winter timeline in 2023, and will take place at the Birmingham NEC from 22nd-25th January. Entrants can find further details of the entry guidelines on the January Furniture Show website. Entries must be submitted no later than Wednesday 7th December.

BREASLEY APPOINTS EX-MILLBROOK SALES DIRECTOR

Breasley (UK) has appointed Mark Hughes (pictured) as its sales director for the UK. Mark will lead the sales development and growth of the UK market as Breasley (UK) continues to build on recent investments in infrastructure and product development.

The business, based in Ilkeston, Derbyshire, is responsible for one of the most diverse ranges of vacuum-packed mattresses in the UK, and is a specialist manufacturer of ownlabel mattress and pillow brands.

Mark was previously sales director for Millbrook Beds, and brings over 32 years of experience to Breasley – 10 of them with the Breasley brand.

“Mark brings a solid foundation of experience across business development and sales growth within the mattress industry,” says Breasley (UK) COO, Bob Badman. “Mark’s ambition and skillset is a perfect fit for us at Breasley as we look to further develop our customer-focused approach and continue to upscale the business.”

At Millbrook, Mark trebled the volume of independent sector business over a four-year period. He comments: “The role represents a challenge that I am greatly looking forward to and comes at an exciting time for the brand as it continues widespread investment.”

SCS PRELIMINARIES REFLECT “STRATEGIC PROGRESS”

In its audited preliminary results for the 52 weeks ended 30th July 2022, ScS reported “strong results and strategic progress”.

The year saw record sales delivered (revenue hit £331.6m, up +8.6% YoY), while gross margin was maintained at pre-pandemic levels, despite inflationary cost pressures. Underlying profit before tax, excluding business rates relief, was £13.8m (£5.6m higher than in FY21), and the retailer finished the year with a strong balance sheet, with cash of £70.8m. One-year LFL order growth stood at +3.9%.

Strategic aims achieved during the year included strengthened leadership in key teams, an improved Trustpilot rating (to the maximum of five stars), and the implementation of a new concept design in three stores.

CEO Steve Carson comments: “We are pleased to be announcing results that are ahead of market expectations. The year saw the group deliver record sales, maintain its strong gross margin and manage costs effectively, resulting in a +68% increase in underlying profit before tax, excluding business rates relief. We also saw excellent progress in year one of our refreshed strategy, including strengthening our teams as we look to drive the business forward in the coming years.

“Trading since the start of the new financial year has been subdued, with the challenges of high inflation impacting consumers’ disposable income.

“We are pleased with the strategic progress we have made which, coupled with the strength of the group’s balance sheet, places the business in a strong position to deal with current headwinds. Whilst we expect the coming months to be challenging, we are confident in the longer-term growth prospects of the business.”

MBS PARTNERS WITH FIRST INSTALL

Leighton Buzzard-based MBS Workplace Environments has been acquired for an undisclosed sum, and a new business, The First Interior’s Group, created. The deal sees MBS Workplace Environments joining forces with Salford-based First Install and Ipswich-based Apex Joinery, forming a new multimillion-pound partnership.

A family business with over 20 years’ industry experience, MBS Workplace Environments supplies furniture to all sectors, including retail, hospitality, offices and schools, as well as furniture installation and interior fit-out. With strong relationships with some of Europe’s leading furniture manufacturers, and working with partners at the forefront of current interior trends, MBS Workplace Environments has forged a reputation for delivering sophisticated and stylish solutions. The combined service offering, experienced management team and industry expertise of all the companies puts The First Interior’s Group in a leading position, providing a totally national and competitive operation.

Mike McVey, head of group sales and operations (pictured), says: “The creation of The First Interior’s Group is great news for the four businesses involved – First Install, its sister company Specialist Interiors Division, Apex Joinery and MBS Workplace Environments. Each individual company brings a wealth of experience and knowledge as well as strong client base to the table, so by joining forces, we are forging a fantastic multimillion-pound nationwide operator.”

Retaining regional offices in Leighton Buzzard, Ipswich and Salford, The First Interior’s Group currently employs 58 people. The group will now embark upon a large recruitment drive, with plans to recruit a further 20 individuals in the coming year. It also forecasts an annual turnover of £7m.

Mike concludes: “As a new national operator providing a turnkey operation for design, manufacturing, installation and interior fit-out, covering all sectors, we are in a strong position to disrupt the industry and accelerate the group’s future expansion plans.”

EPR SCHEME NECESSARY TO HIT MATTRESS RECYCLING TARGETS, SAYS NBF

The National Bed Federation’s fourth report on the rate of mattress recycling in the UK has revealed a +5% increase in the number of mattresses being sent for recycling between 2017-21, to 24% of the estimated 6.4 million mattresses reaching End of Life (EoL).

However, the ‘real’ rate of recycling - the fate of the mattresses or their components and materials after sorting and processing - is rather lower (an estimated 14%). And since the most common means of managing the 76% of EoL mattresses not going for recycling is still landfill, the NBF’s target of 75% diversion from landfill by 2028 looks set to be missed – without significant intervention in the form of an Extended Producer Responsibility scheme.

Simon Spinks, chairman of the Harrison Spinks Group and the NBF’s Circular Economy Committee, says: “The positive take from this new report is that, in the eight years since we have been looking at the data, the proportion of EoL mattresses sent for recycling has more than doubled – from just 10% to around 24%.

“Less-good news is that the real rate of recycling is significantly lower, and we are still a long way short of our target of 75% diversion from landfill in the next six years. It is clear to us that intervention in the form of an Extended Producer Responsibility Scheme is required.”

The 2022 End of Life (EoL) Mattress Report, produced on behalf of the NBF by environmental consultant Oakdene Hollins, sets out not only to report the numbers, but also to identify the opportunities and challenges involved in accelerating the pace of change to achieve the NBF’s 75% diversion from landfill goal in the next six years. Based on detailed analysis of published data plus surveys and interviews carried out with local authorities, manufacturers, retailers and recyclers, the report identifies key areas for improvement include collection, reprocessing, developing end markets for recovered materials and designing with EoL in mind.

The report also aims to show how an Extended Producer Responsibility (EPR) scheme for mattresses would facilitate a more comprehensive and harmonised approach to the management of mattress EoL, providing the revenue and incentives to develop the collection and reprocessing infrastructure, achieve a more environmentally sound treatment of collected products and increased material recovery rates for all materials, and drive product design improvements.

The NBF has already worked closely with Zero Waste Scotland on an outline business case for EPR for mattresses, which has recommended a UKwide, industry-led, mandatory scheme as being the most viable option. La-Z-Boy has promoted former La-Z-Boy UK MD Mark Draper to the role of VP of international, replacing him with former sales director – national accounts UK Richard Greenwood. Both were present for La-Z-Boy Inc president and CEO Melinda D Whittington’s recent visit to the brand’s UK operation

The Furniture Makers’

Company 300+ mile bike ride from St Albans to Morecambe, organised by the livery company’s master Tony Attard, has raised £27,000 for the industry charity

Hydeline Furniture

has announced a 10% reduction to its UK delivered prices across its Hydeline and At The Helm ranges

Bazaar Group has opened a distribution centre in Germany focused on fulfilling European consumers’ growing online requirements

Spinks, the pocket spring manufacturer and components supplier, has been awarded a grant totalling £670,000 by UK Research and Innovation (UKRI)

JYSK opened a new store in Barnsley in September. The store is located on Wombwell Lane Retail Park, boasts approximately 1200m2 of floorspace and is managed by Matt White

Next has reported a H1 performance ahead of expectations, yet due to a slow start to H2 and an uncertain outlook, has reduced its forecast for full price sales in the half from +1% to -1.5% YoY, and its profit guidance for the full year from £860m to £840m