ScS has snapped up digital-first sofa-in-a-box brand Snug for £875,000.

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Snug has been acquired by ScS for £875,000

Furniture and flooring retailer ScS has acquired the brand, domain name, website, intellectual property and stock of Snug just four years after its launch. 

The retailer described Snug, which specialises in reconfigurable sofas and sofa beds, as a “great strategic and cultural fit” with “great potential”.

Based in Leeds, Snug employs 53 people and is expected to turn over £20m for the year to December 31, 2022. In 2021, it posted sales of £30m, up from £7m the previous year.

ScS chief executive Steve Carson said: “Snug is an exciting and young business with great potential. It has a strong and recognisable brand, a differentiated product and targets a market that complements our proposition. 

“In that regard, it presents us with an exciting opportunity to further increase market share. We, therefore, view it as a great strategic and cultural fit, which reinforces our commitment to helping our customers create the home they love. We look forward to welcoming our new colleagues into the ScS family.”

ScS hopes Snug’s digital-first offer will attract younger shoppers and increase its share of the market.

An ScS spokesperson said: “Snug’s strong brand and differentiated digital-first offering will complement ScS’s existing proposition, further diversifying its customer base and increasing market share.

“Snug’s innovative approach to social engagement and digital marketing will be an asset to the wider ScS business, while Snug will benefit from the group’s expertise, supplier relationships and scale.”

Management at Snug described its first years as a business as a “rollercoaster”, balancing growth through Covid-19 and supply chain challenges including a 700% increase in shipping costs, unfavourable exchange rates and the drop in homeware sales in the light of the cost-of-living crisis, which impacted its growth ambitions for 2022. 

It said: “Snug set out to disrupt the industry with fast and convenient delivery of modular sofas, and this new partnership with ScS supports us in our ambitions to be a leader in the industry. 

“Snug’s loyal customer base has been the foundation of our success since the beginning, and we’re now looking forward to continuing this journey with their support and the support of such a well-respected and established partner.”

As part of the agreement, Snug’s website and its Leeds store will continue trading as normal.

The deal is one of several in recent months for direct-to-consumer brands within the home and furniture sector, with bought by Next for a modest sum in November and Bensons for Beds’ acquisition of Eve Sleep in October.