A boom in sofa sales makes perfect sense. Many businesses helping to improving the home environment, such as DIY and electrical retailers, have seen a pick-up in sales during lockdown this year as people seek to improve their home comforts. DFS is also among the beneficiaries. After all, if you’re going to spend so much time at home, why put up with tatty seats, peeling wallpaper and fridges on the blink?
Russ Mould from AJ Bell said: “This situation has put home-based product sellers in a sweet spot. But what happens now that more people are starting to return to work in offices, shops and on-location sites? It shifts the attention away from the home and perhaps pushes home improvement tasks back on the ‘to do list’ that never gets done.
“The other issue to consider is rising unemployment and how that might affect sentiment towards big ticket purchases. News headlines of job losses can make people worried about their own job security and dampen enthusiasm to want to spend hundreds of pounds on something.
“DFS has effectively had an early Christmas present and possibly seen a boost normally associated with Boxing Day and New Year sales. A flare-up in coronavirus cases during the autumn and winter could potentially sustain the current sales momentum if people are encouraged to stay working from home, but one has to wonder if DFS has already seek its peak earnings season this year.”