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Keen industry observers have Been saying privately for some time that sooner rather than later DFS would come unstuck.

DFS have pursued a policy of home manufacturing which of course works well when orders are up but as orders fall the relatively fixed cost base is punitive.

The arrogance of assuming that it can continue to take money from advertising to prop up the bottom line was always going to have a longer term negative effect, the equity in the brand that they have been using has been negated with a growing market, as the market falls DFS become exposed.

The management folly of pursuing a strategy of bringing in other brands such as dwell and sofa workshop makes no sense at all. It has given valuable trading space to competing brands and confused the offer whilst tying up capital and management time.

The opportunity to use the equity in the brand to extend its offer in to bedroom dining etc has been lost. The company could easily have utilised the mezzanine space it has in the majority of its stores to provide cheap space whilst improving its sofa offer on the ground floor.

The appointment of Mr Filby above all else was a mistake, he is a good corporate mechanic but not the retail merchant DFS needed. The aggressive focus on sales has been lost and the equity in its brand used up. Time for a change !