Gillies of Broughty Ferry’s pre-tax profit leapt 37% to £1.7 million in another successful year of trading by the home furniture retailer.
The headquarters’ shop and its three other stores in Aberdeen, Perth and Montrose all reported increases in sales, with Broughty Ferry and Aberdeen particularly strong.
Sales at the Perth store showed a healthy increase following a recent extension and the opening of its coffee shop overlooking Perth Concert Hall.
Overall sales at Gillies increased 6.7% to almost £16.4m in the year to August 31, 2014. The higher revenue combined with energy efficiency savings the roofs of all Gillies stores have solar panels and careful cost monitoring contributed to the profit before tax of £1.7m.
The company’s workforce rose by 20 to almost 160, and the store upgrading programme continued with new lighting, ceiling and flooring replacements. There was also a complete refurbishment of several departments in the Aberdeen store.
Managing director Ian Philp said objectives for the coming year are in direct response to customer feedback.
There would be major additional warehousing at West Pitkerro in Dundee to accommodate a substantially increased number of lines held in stock.
Extra customer service initiatives, a better online presence including some e-commerce, and continued upgrading of stores would give customers an even better shopping experience.
Finance director Liz Mahady said the business environment Gillies operates in continues to be challenging.
The company is subject to consumer spending patterns and customers’ overall disposable income within the industry.
The family business has come a long way from the company set up by cabinetmaker and upholsterer James Gillies in 1895.
Today it has a database of 65,000 customers who have visited its stores and website, and it is meeting their needs that the directors feel has been crucial to the company’s longevity.
Its fleet of 25 vehicles deliver furniture and floor coverings all over Scotland and as far north as Shetland.
“We don’t hassle our customers,” said director Alistair Philp in a recent interview. “We welcome them, gently inquire if they need assistance and leave them to look around and are available to help if needed.
“We want coming into Gillies to be a pleasant experience, a shop where people can look around at their leisure and not feel they are under pressure,” he added.