Australian furniture group Nick Scali has detailed its plan to establish the brand in the UK market following the acquisition of Anglia Home Furnishings Limited (AHFL), trading as Fabb Furniture. (Read more here).
Nick Scali has revealed a timeline of key objectives, which will see Fabb Furniture be completely rebranded under the Nick Scali brand, as well as see new product ranges being introduced and return the business to profitability.
Within the first six months
Detailed within its presentation, the company said it will support management through any disruption due to integration and re-branding and to continue to grow the team as the UK business expands.
Within 10 months
The group will transition stores to carry the existing Nick Scali lounge and dining product range.
Within 12 months
The company has an option to exit the existing distribution centre and is in advanced discussions for a new distribution centre. It will invest in marketing the Nick Scali brand in the UK, leverage insights from the Australia & New Zealand markets, while also leveraging buying power and the group supply chain and logistics network.
Within 18 months
The group plans to, over the short term, refurbish and re-brand existing stores, as well as optimise and right size the store network. As for longer term, plans are afoot to expand the store network with the UK business expected to return to profitability on a run rate basis. However, “losses expected to increase temporarily in FY25 during the transition period as a result of store refurbishments, rebranding and introduction of new product range,” the company added.
For the FY24, Fabb, which operates from 21 stores across the UK, posted revenues of £34m, with an EBITDA loss of £2.8m.
Nick Scali currently operates from 107 stores (64 being under the Nick Scali brand and 43 under Plush) across Australia and New Zealand, with total group revenues reaching A$508m.
The acquisition is subject to limited customary conditions and is expected to complete in mid-May.
Commenting on the acquisition, Nick Scali CEO, Anthony Scali said: “The Acquisition of Fabb Furniture provides an opportunity to enhance our geographic diversity and scale beyond Australia and New Zealand for the first time.
“The Acquisition provides us an immediate entry point into the large UK market with a 21-store network across key locations; a scaled platform to establish the Nick Scali brand and product offering in an attractive new market.”
