Deflation hurts Steinhoff Group

Steinhoff International, the South African based conglomerate has reported a fall in UK half-year revenue due to deflation.

According to their 2017 half year trading update ended 31st March 2017, total sales in the UK fell by 19% to €325m from €401m last year. Steinhoff UK stated that a 14% devaluation in the pound impacted their performance, coupled with a 'challenging post-Brexit environment' and the store closures.

On a constant currency basis, UK sales declined 6%, with like-for-like sales down by 2%.

With regard to it's UK store estate, including Poundland, Bensons for Beds and Harveys Furniture Steinhoff opened six new stores, two Bensons and four Harveys, but closed seven Bensons for Beds, bringing its total portfolio down to 273 Bensons stores.

CEO of Steinhoff Markus Jooste said: “Steinhoff group delivered a solid set of results supported by a resilient discount market as well as strong leadership and execution from our decentralised management teams. Based on the group’s performance during the interim period, the momentum in the business is expected to continue and the group should perform in line with expectations.”

Source: Insight Team

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