- Sales at furniture store Nick Scali have grown 20% during the last quarter of the 2020 financial year, following coronavirus related shutdowns.
- The store has reported an uptick in sales particularly in May and June as Aussies spend on furniture and homeware.
- Nick Scali now forecasts a 30% rise in sales during the 2021 financial year.
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Furniture store Nick Scali forecasts a 30% rise in sales during the 2021 financial year as sales start to pick up following coronavirus shutdowns.
Like several businesses in the retail industry, Nick Scali temporarily shut all its stores from March 30, and stood down most of its staff in the process.
With the closure of its showrooms, the business was hit with a "significant decline" in its sales toward the end March and start of April. This wiped between $9 and $11 million worth of sales during the 2020 financial year.
During the shutdown, the company launched a digital sales option, which has since paid off.
"Whilst this initiative remains in the early stages of development, the company is pleased with the growth it is demonstrating and sees further scope to invest in this capability," Nick Scali said in a statement.
In April, Nick Scali reopened all its showrooms and has seen sales start to pick up.
Between April 1 and June 14 2020, sales were up 20.4%. However, May and June in particular have seen more customer activity returning. The company expects sales over these two months to rise 54% compared to the same time last year as government restrictions ease and customers spend on homeware and furniture.
With these positive sales figures, Nick Scali projects a rise in revenue during the start of the 2021 financial year.
"Given the nature of Nick Scali's business model and the significant increase in sales orders during May and June, the company anticipates sales revenue for Q1 FY21 to be approximately 30% up," the company said in a statement.
A rolling list of retailers that have shut their doors amid the coronavirus outbreak, including Michael Hill, Noni B and The Athlete's Foot Furniture store Matt Blatt has been acquired by Kogan for $4.4 million, and will now become online-only