Beale reduces furniture supply base as it looks to maintain margin amid falling sales

29th January | retail | Department store group Beale will work with fewer furniture suppliers as it bids to maintain margin and reduce costs. The firm recorded a 18.5% fall in turnover to £47.9m and a 7.8% drop in like for like sales in the year to 1st November 2008.

It says the fall in the value of sterling against the dollar and euro has prompted a ramping up of its direct Far East sourcing strategy and that it has dropped a number of its furniture suppliers after a review of ‘every single product’ that it sells.

‘We have implemented a new buying and sales strategy on furniture, which is proving to be very successful and outperforming our key competitors. It is simply based on a smaller supply chain, better buying and cost prices, which we are able to then pass on to our customers with lower prices offering them enhanced value,’ said Tony Brown, chief executive.