Heal’s on Tottenham Court Road
(Picture: Google StreetView)High-end furniture shop Heal’s has warned that price rises at its shops are “inevitable” as sales pass £50 million for the first time in its 212-year history.
The retailer, which has a major shop by Goodge Street, said sales in the 12 months to September 18 crossed the threshold despite the fact its six stores were closed for extended periods during the pandemic lockdowns.
Website sale more than made up for the drop in in-person shopping, with online sales up 51% to account for 60% of overall revenue. Sales were boosted by customers stuck at home eying renovations and improvements, Heal’s said.
Profit before tax was £2.1 million, compared to a £2 million loss in the previous year.
But Heal’s warned there were challenges to maintaining the performance, with supply chain cost pressures, freight charges and delays squeezing margins.
While the business had been trying to resist raising its prices, some have “proved inevitable” it said.
Shop inflation accelerated to 2.1% in March, up from 1.8% in February, according to the latest BRC-NielsonIQ shop price index. That was the highest rate of inflation in over a decade.
Heal’s said ongoing disruption as a result of coronavirus, as well as the conflict in Ukraine, have affected customer sentiment and people’s propensity to shop.
Hamish Mansbridge, CEO of Heal’s, said the business was well placed to weather any uncertainty.
“As well as seeing growth in demand for home interiors, it’s a real testament to the strength of our brand and the quality of our products that customers were buying in increasing numbers through our online channels, both during and after lockdowns,” he said.
Heal’s best-selling products were sofas and easy chairs, as well as dining tables and chairs, marking a shift away from desks and storage, which were popular during the early months of the pandemic as people adjusted to home working.
