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Published
Oct 26, 2021
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Studio Retail's "well-stocked" for critical Q3, sales stayed ahead in H1

Published
Oct 26, 2021

Planning ahead to secure its Q3 supply chain has been a good move for value retailer Studio Retail Group’s stock position.


Studio.co.uk


And with the critical quarter (which includes Black Friday and Christmas) accounting for 40% of full-year product sales, it’s been essential to stay ahead of the game, given the widespread supply chain issues.

Via use of its contracted container shipping plus additional charter ships, “overall, Studio is in a strong stock position ahead of the peak with inventory levels, approximately 10% ahead of last year”, the digital value retailer said in its trading update Tuesday.

However, it did admit a small number of (unnamed) ranges “have experienced delays which could impact availability late into the peak season”.

And as the company prepares for its critical trading period, Studio Retail also said H1 product sales to 24 September were “marginally” ahead of the “exceptional performance” seen in the prior year and up 38% over a two-year period. 

The company sells a wide variety of general merchandise and clothing products but also has a credit arm. That Financial services revenue in H1 was 11% ahead of the prior year, it added.

In other good news, the group's core net debt ended September was cut to around £20.6m from £45.2m a year ago.

But it warned: "Whilst the business is well positioned with a strong overall stock position, there are continuing headwinds in the wider market that make the outlook more uncertain than usual at this stage of the year”.

Expect an update at the end of November.

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