DFS16 Oct 2022 09:54
With evesleep-France closed down and distribution through Dunelm, Homebase and Next stopped. Will DFS be the last channel for Eve Sleep? Hopefully we’ll find out this week.GLA.
Edited Transcript of DFS earnings conference call 15-Sep-22
“our exclusive brands are a key way of differentiating our product range from the rest of the market and they broaden our appeal to a wider range of customers.”
“Turning to the home opportunity. We view the beds and mattresses segment as a key long-term opportunity to grow our addressable market for the group. With a market size of around GBP 3 billion per annum, our ambition is to grow our share in this segment to around 4%. Now we're able to utilize many of the group's existing assets, including our sourcing and manufacturing capability for upholstered furniture, our web and logistics platforms, our marketing expertise and data and our differentiated brand partnerships. With over 700,000 customers each year shopping with us already, many of them utilizing interest-free credit, we have a really strong opportunity from our existing customer base. Now a key element to achieving this strategy is to raise product awareness. And to that end, we've been investing in above-the-line marketing as well as digital marketing to drive awareness of the bed and mattress offer, particularly DFS. Indeed, we released our first non-Sofa TV advert earlier this year, focusing on our bed range. We've seen strong growth with our online bed sales increasing by 94% versus FY '19. In terms of our supply chain capability, we're using our existing customer delivery network and assets to consolidate beds and mattress deliveries in our large warehousing facilities in Milton Keynes. And we're going to continue to build our capability and foundation to support this growth opportunity over the next few years.”
“Question from Jonathan Pritchard from Peel Hunt. Two from a sort of space angle, really. We saw beds and mattresses on the Capital Markets Day at Milton Keynes. What's the potential for that? Has that changed? Or is there a potential for that to go into a number of more stores?”
“Timothy Giles Stacey, DFS Furniture plc - So take the beds and mattresses in stores. So we -- you've seen, we're trialing in a number of stores, different approaches to home, particularly focused on beds and mattresses. It's fair to say we're looking at increasing some of the space. We've put some mezzanines into a couple of stores to see how that works, and we've seen some encouraging signs there. I think our focus is online, to be clear. And we've massively increased the range of beds that we've offered across all styles and price points, and we're really advertising heavily digitally, and we're seeing some really strong growth there. So that's our primary focus, and we'll test and learn over the coming year about our in-store offer.”
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