Thu Oct 27 16:53:12 CAT 2016

Lewis Group's strategy yields positive results

By unknown | Nov 13, 2007 | COMMENTS [ 0 ]

Xolile Bhengu

Xolile Bhengu

Furniture retailer Lewis Group's strategy of sticking to what it knows best has paid off.

The group, which has the subsidiaries Best Electric and Lifestyle Living, reported an interim revenue increase of R1,718billion yesterday, up 11,2percent for the financial year ended September 30.

The main Lewis chain store, an 82percent revenue contributor, reported revenue growth of 10percent and merchandise sale increases of 6percent.

Lewis said the results had reflected sustained growth and improved profitability.

Group chief executive officer Alan Smart said: "We are sticking to what we know best. Our merchandise strategy of getting the best value for our customers has shown good results, but of course we would have liked to have had more sales.

"It's going to be a tougher year going forward, but we remain positive that our business model and planned promotions will ensure a positive trade."

Lewis said it had maintained a 3percent net debtor book.

"Our customers are paying their accounts and we are happy that we have managed to hold on to things by working closely with them; 60percent of them (are) repeat business," Smart said.

He said Lewis would not be changing its customer centric business model, which combines both retail and financial services, despite competitor trends and commentary on the issue.


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