Furniture retailers have started to feel the effects of economic pressures. The JD Group says its trades are down by 4.8% compared to last year. The JD Group owns Incredible Connections and Hi-Fi Corporation stores. The OK Furniture shop has also felt the effects of inflation saying that, unlike with food which consumers cannot do without; durable goods have suffered the most. Consumers have reduced their spending on household goods, as economic pressures step in.

“This forces the furniture trade, for instance, to discount heavily to move stock with disastrous results for their margins. This is exactly the experience we have had these past six months in our furniture business although we have a higher cost to credit ratio than other furniture retailers,” said the group.
The JD Group says its cash division showed a 6.7% overall increase with Incredible Connection and Abra showing excellent top line growth.
“Most gratifying was the increase in product margin at Hi-Fi Corporation. The credit chains traded at 86.9% of the corresponding period. Our entry level brands, i.e. Price `n Pride and Barnetts faired better than the universal chains,” said the JD Group.
Revenue for financial services showed a year-on-year decline of 4.6% with the provision for bad debts continuing to move out.