Challenging trading and delivery problems blamed
Sofa retailer ScS Upholstery has issued a profit warning because of poor demand and delivery problems.

Like-for-like sales were down 8 per cent for the 18 weeks to February 3 and down 7 per cent for the first seven weeks. The company said trading conditions had been more challenging than originally anticipated.

Pre-Christmas deliveries were affected by problems with the logistics management system, primarily in the retailer's southern distribution centres.

The company said: 'We intend to prevent any recurrence of these difficulties by extending delivery times during the forthcoming March peak period and by strengthening controls at these locations.

'We will also bring forward the scheduled opening of two distribution centres, in Wales and the Home Counties, to support the southern regions.'

The retailer said logistics management issues and the extension of delivery lead times are expected to result in a deferral of approximately£2 million of sales in the four-month period to July 31.

The upholstery company has opened three stores this financial year. A further six are set to open before the end of July.