DFS boss Ian Filby revealed the retailer is mulling expansion into Belgium and Germany after a successful launch in the Netherlands.

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Filby told Retail Week the furniture specialist will potentially roll out the network it has built in the Netherlands to “adjacent European countries”.

His comments came after DFS revealed the launch of a store in Cruquius, the Netherlands, has given the company “the confidence to continue our international trial by opening more stores and increasing marketing spend”.

DFS opened a further branch in the Netherlands in September at the Alexandrium shopping centre and has plans for one more store in the country during the current financial year.

The retailer also revealed it has acquired a business in Murcia Spain, called DFS Spain, in order to expand on its popularity among expats in the country.

Filby said: “Because this outfit owned the DFS trademark we weren’t able to advertise, the current owners are now going to be employees of ours.”

DFS spent a “modest sum” on acquiring the business that was the equivalent to opening one store in the UK, according to Filby.

Expat appeal

He added that through its website the furniture retailer was also enjoying sales growth in other countries with big expat communities, including Portugal and France.

Filby explains DFS is popular with expats because the retailer’s “value proposition is very strong relative to the local fragmented players in those markets”.

He added: “If you are able to overcome the cost of logistics it suddenly makes your proposition very competitive from a value perspective and underpinned by a brand they will understand a lot better than the local mom and pop store.”

Filby hinted any expansion beyond Europe would require a partnership model, rather than a replication of the model it runs in the Netherlands and Spain.

He said: “Logic would tell you that if in the future we want to do any other international expansion you might need to take different models. “

Filby was speaking after DFS revealed this morning that pre-tax profits had jumped to £10.7m from £3.6m for the year ending August 1, while gross sales jumped 7% to £913.1m.