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Gillies: Historic Broughty Ferry retailer’s sales climb £6m in ‘year of two halves’

The family-run business said the boost in sales following the pandemic was followed by the cost-of-living crisis.

Gillies' premises in Broughty Ferry.
Gillies' premises in Broughty Ferry.

Sales for home furnishings retailer Gillies of Broughty Ferry have increased by more than £6 million.

The group operates shops in Broughty Ferry, Aberdeen, Perth and Inverness, as well as a clearance store in Montrose.

Newly published accounts show turnover rose to £24.5m in the 12 months to August 2022, from £18.1m the year before.

It is the second successive year the firm has reported a rise in sales, having seen profits fall by 60% in 2020.

Gillies also reported pre-tax profits of £2.9m for the latest period, a slight reduction from the previous year’s figure of £3.1m.

Boost in orders followed by ‘considerable’ challenges

The early part of the 2021-22 trading year saw a boost in orders following the Covid lockdowns, the firm said.

But the year was not without its challenges, including the cost-of-living crisis and war in Ukraine.

Gillies also had to deal with supplier price inflation, both for products and freight. It said the rise in prices put “considerable pressure” on the team.

The firm added: “As a long-standing family business, we are structured to be able to consider and respond quickly to the challenges that arise.

The Gillies furniture store in Inverness.

“The directors are satisfied with this outcome given the trading conditions faced.”

To cope with the challenges of rising utility costs, the firm said it had placed a focus on energy saving activities.

This has included replacement lighting being rolled out in all its stores.

In June 2022 the firm announced it had acquired rival Grampian Furnishers, based in Elgin. It took the company’s headcount in 2021-22 to 200, a rise of about 20 year-on-year.

The acquisition also contributed towards an increased wage bill of £5.8m, up from £4.9m in 2021.

‘A year of two halves’, says Gillies boss

Managing director Ian Philp said it was a year of two halves for Gillies.

He said while the first half of the year benefitted from the post-Covid bounce-back, the second half  saw consumer confidence deteriorate.

“This financial year, trading has undoubtedly been affected by the general economic situation.

“Interest rate rises and inflation in particular have impacted on customer demand.”

Gillies' managing director Ian Philp
Gillies’ managing director Ian Philp.

However, Mr Philp remained confident the company – which celebrated its 125th anniversary in 2020 – would be able to navigate the challenges.

The business, which originated in Dundee, has seen five generations of family ownership.

Mr Philp added: “Such times have been experienced by the company before.

“I am confident our board of directors is well placed to the steer the business through the challenges that may arise.”

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