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healsTCRHeal’s says it will place greater emphasis on ecommerce in the future following a strategic review that sees it scale back its store portfolio and write-down its value.


The upmarket furniture retailer next month plans to close its King’s Road store — one of six across the country and two in the capital — as part of its plan to pare down its total store footprint.


Heal’s says it has just completed the second year of a turnaround plan that is seeing it put more focus on its growing online business.


Guy Weston, chairman at Heal’s owner Wittington Investments, said that in 2013–14 the retailer had further refined its product offer, while its autumn/winter 2015 launches showed own-label ranges at “more accessible prices and higher quality.”


He added that the Heal’s management team is focussed on simplifying the business and offering customers exclusive product designed in the UK and manufactured in partner European workshops.


Mr Weston also said that Heal’s had reviewed the store portfolio, with an impairment review by management concluding that carrying values exceeded the recoverable amount by £1.2m, leading them to write-down the values accordingly.


That was likely to have impacted its 2013–14 result, though no indication was given as to whether Heal’s had made inroads into losses north of £8m on sales of £23.4m in 2012–13.


However, sales are expected to be higher when accounts for the business are filed. The Furnishing Report estimates that total sales in the year to September will be up by around 11 per cent to about £26m.


Heal’s accounts aren’t due until the summer but have been habitually filed well in advance in recent years.



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