As factories are closed due to Covid and transport is delayed, furniture brand Made.com has been missing out on a lot of revenue in recent months and it will therefore not meet its expectations this year.
Deliveries will not arrive before the new year
Failures in the global supply chain have worsened in recent months: the coronavirus pandemic first caused maritime transport and production delays, and then the sudden influx caused ships to be stuck in ports. In the meantime, a new Covid wave is again leading to factory closures, while spikes in energy and fuel prices are further complicating both production and transport.
Furniture retailer Made.com is starting to feel the strain. Although demand for interior products remains strong, delays in deliveries can not cope. Both the timing of new stock and deliveries to customers are experiencing delays. Moreover, the brand’s factories in Vietnam have been closed for some time because of Covid.
Investing in stock and logistics
According to The Guardian, Made.com will not meet the expectations for this year, delaying up to 45 million British pounds (about 53 million euros) in expected revenues until next year. Consequently, the retailer is lowering its sales forecast from 410 million to 375 million pounds. The delivery difficulties are also affecting profits. However, the company expects to have an increase in sales by 40 % in 2021.
Bracing itself for the future, the furniture retailer is building up more stock. The company is also investing in its warehousing and logistics to ensure that it can get items to consumers much faster from 2022 onwards. “Additionally, supply of goods from Vietnam has now returned to close to normal levels”, says Made reassuringly.