The company behind fitted furniture retailer Sharps Bedrooms has axed more showrooms as it struggles to keep up with rising wages amid its second loss-making year in a row.
The West Midlands-based business closed six more locations in the 12 months ending October 1, 2023, having removed 21 from its portfolio the year before. Staff numbers remained the same despite the closures.
This continued move away from in-person shopping came during another difficult year for Sharps Bedrooms as it made a pre-tax loss of almost £4m – down from just under £5m during the previous period.
The company’s slightly improved bottom line was thanks to an increased demand for home goods which boosted its turnover to £135m from £117m the year before.
However the business said this increase hadn’t translated to a profit due to the ongoing high cost of labour and energy, plus a significant investment in marketing over the period.
In a business review published alongside its financial results on Companies House, the firm behind the brand said: “The group performed robustly despite a period of continued uncertainty subsequent to Covid-19 and period of economic disruption in the UK following the Russian invasion of Ukraine feeding through to significant energy cost inflation.
“In an already tight labour market the high level of inflation inevitably feeds through to our dedicated colleagues and contractors which has resulted in the group experiencing high levels of labour inflation.
“To support our colleagues through the cost of living crisis we brought forward our annual pay review from October 2023 to April 2023 ensuring the pay increases at least matched the levels of inflation experienced.
“Despite the headwinds in the broader economy and the cost of living pressures experienced by our customer, demand for the group’s product continued to increase during the year albeit at a slower pace than seen in previous Covid-impacted years.“