THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
The Papers
RETAIL INSIGHTS
RETAIL SOLUTIONS
• The HR Summit 2019
• AI in Retail Conference 2019
• Omnichannel Futures Conference 2020
• Future of Customer Engagement 2020
ABOUT
CONTACT
SUBSCRIBE FOR FREE
DFS to buy Sofology

DFS has exchanged contracts to acquire sofa retailer Sofology in a deal worth an initial £25 million. In a statement, the furniture retailer said the acquisition… View Article

HOME & DIY

DFS to buy Sofology

DFS has exchanged contracts to acquire sofa retailer Sofology in a deal worth an initial £25 million.

In a statement, the furniture retailer said the acquisition will add a “strong distinctive” brand and business to its portfolio as it looks to build on the success of its Dwell and Sofa Workshop acquisitions.

Sofology has a network of 37 stores in the UK as well as an online store. The company’s chief executive and management team will continue to lead the business following completion of the acquisition.

Having invested £5 million in technology development over the last eighteen months, Sofology benefits from omnichannel tracking and attribution, visualisation technology and personalised marketing content delivery, which DFS said has the potential to be shared across its group.

DFS said the enlarged group might also benefit from tighter delivery radials including increased van loads. There will be no store closures following the acquisition and the store opening programmes of both DFS and Sofology will continue as planned.

The deal is subject to regulatory approval.

Sofology reported revenue of £143 million in 2016 and, following the impact of exchange rates on cost of goods sold and disruption following a rebrand, an EBITDA loss of £2.7 million. It made a statutory loss before tax of £8.9 million over the same period. EBITDA over the twelve months to 31 December 2015 was £2.9 million.

Ian Filby, chief executive of DFS said: “While the UK furniture retail market continues to be very challenging, we remain focused on making strategic progress to strengthen our position in living room furniture. This acquisition represents a clear opportunity for DFS to accelerate our proven strategy of broadening our appeal, generating substantial long-term returns for shareholders underpinned by well-understood synergies.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
SENIOR-LEVEL FORUM FOR HEADS OF MARKETING, DIGITAL, ECOMMERCE AND CX
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Future of Customer Engagement 2020
Future of Customer Engagement 2020
10 June 2020
Cavendish Conference Centre, London W1G 9DT
The 11th Annual Retail Customer Engagement Conference