Q&A: DFS boss Ian Filby on Sofa Workshop investment and Boxing Day Sales

How will your investment in Sofa Workshop add value to DFS?

We made a modest investment in Sofa Workshop and it will remain very much a separate organisation. It enables Sofa Workshop to enjoy the synergies of our operation. It hasn’t developed anything like a sophisticated online operation. We have a fantastic opportunity to develop an online business and inevitably there is an opportunity to put Sofa Workshop exclusive products into DFS stores. By next spring we should start seeing product coming to the estate.

Sofa Workshop has got strong brand recognition. It’s more aspirational. We’re trying to broaden our appeal. We’re still getting value-seeking customers but we’re stretching the brand like we have with Country Living, House Beautiful and French Connection [ranges].

Revenue and profits dipped in the first quarter. Will you make lost sales up in the rest of the year?

It’s the smallest quarter in the year. And I don’t think we are alone. I’m much more encouraged by current footfall. We’re going into the [winter Sale] pretty buoyant.

Are you expecting a strong winter Sale period?

I think the economy remains challenging. For young families things are still really tough, and that customer base comes out in the winter Sale. Footfall and [web] traffic shows a good level of interest.

Will you be discounting more or less than last year?

There’s no significant change. All the players in the market will be aggressive with their opening price points. It will be fairly similar to last year.

How has 2013 been for DFS?

We’ve had another year of investment in the business. We’re confident for the year ahead, with new stores and the replatforming of the website, plus broadening the range of partnership brands. We opened our 100th store in Torquay on Saturday. We’ve opened 25 stores in under three years.

How will 2014 play out for DFS?

We’re hoping for a healthy market post-Christmas, even if it is delayed spend from the end of the year.  People are feeling slightly more confident in terms of the safety of their jobs. It’s good for the market. By next summer we will hopefully have generated some momentum. But I don’t think it will be a boom year.

Is there any update on DFS owner Advent’s exit strategy, and whether it is considering a float?

We do not comment on press speculation.