Lewis Group recently announced that they have acquired United Furniture Outlets (UFO), which is a cash retailer of luxury household furniture and accessories.
A High-end Furniture Retailer
UFO was established over a decade ago, in 2004 and currently has 30 stores. Around half the stores are located in Gauteng, including its original, really large, store in Sandton.
UFO sells a variety of fancy furniture, including lounge, bedroom and dining room products with prices ranging anywhere from under R100 (the cheapest thing we could find was R59.99) up to R60 000 or more.
Not That Kind of UFO, silly!
Lewis, says the acquisition of UFO, which is valued at R320 Million, will give them a new platform to sell to new higher end clients with a range of more exclusive products. This is something the brand has been wanting to do for a long time.
Johan Enslin (group chief executive), says that the acquisition aligns with Lewis group’s strategy of gaining access to higher income customers and would diversify its offering by “increasing its cash-to-credit sales ratio“.
What do they Intend To Do With UFO?
Lewis has big plans for the brand. Mr Enslin says that Lewis strongly believes that the UFO brand and business model is scalable. They also feel that it will present them with the chance to extend the store footprint across SA into new untapped areas and then off into other southern African countries where Lewis already have stores.