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Last Updated: Thursday, 9 September, 2004, 15:48 GMT 16:48 UK
MFI shares dive on delivery woes
MFI store
MFI introduced a new supply chain system earlier this year
Furniture retailer MFI has said its UK retail business will make a "substantial" loss this year because of delivery problems to customers.

In a statement it said there had been "significant issues" with its new supply chain system, which meant orders had not been delivered as planned.

It also said orders were below expectations, and that profit would be lower in the second half of the year.

MFI shares ended the day down 22 pence, or 17.4%, at 104.5p.

The London-based retailer introduced a new supply chain system earlier this year in a bid to simplify deliveries.


"The difficulties experienced in customer deliveries have impacted both margins and sales dispatches," the company said in the statement.

"Margins are being negatively affected through the costs of remedial work with customers and the costs being incurred to address the ongoing systems issues."

It added: "We believe we have identified the key issues with our systems and are working to resolve them as soon as possible.

"Our priority is to restore the profitability of the UK retail business."

Sales drop

The company, which has 192 stores across the UK, said its Howdens joinery business continued to trade strongly.

In July, the company said its interim profit had almost halved, after recording a steep drop in sales at its core UK business.

Pre-tax profit for the half-year to 12 June fell to �32.1m ($59m), down from �59.3m in the same period last year.

Now it says group profit for the second half would be "materially below" that of the first half.

In recent months, speculation has grown that the firm could be a bid target, amid reports that a management buyout is being considered.


Your comments:

We ordered a dining table and four chairs and were given a delivery time of two weeks. On the day that delivery was planned, we got a call to say they had run out of stock and it would take approx. 4 weeks to get stock back in. As we had thought the delivery would happen (as we had been told by MFI), we, a family of four, had sold our old dining table and chairs a day before the expected delivery. A week before those 4 weeks were up we received a new delivery date. On that day, we received a delivery, but only the table. When asked where the chairs were MFI said that they'd had stock problems and the chairs would be delivered asap. We were not given a date, in fact, we didn't hear back at all. Having spent literally hours on the phone chasing MFI for the chairs, we were finally given a delivery date and received the chairs, 8 weeks after the original delivery date. No compensation was offered at any point.
Dagmar Mackett, Aylesbury, Bucks

Worst delivery service i have ever experienced! Initial delivery didn't take long, but try calling to report damaged parts of a flat-pack and then the problems begin. I placed my order in January, it arrived in January, and still have a pile of unassembled pieces of furniture due to non arrival of replacement parts. The parts will always be "with you in a couple of weeks, sir". I gave up calling them in May. It's a pity because their furniture, especially kitchens, is of good quality and good value.
Colin McGowan, Glasgow

Where do I start? I was given one price for a bedroom range, however when I went to order items a few days later the original offer couldn't be met. I was given a date for delivery, however 2/3 of my bed arrived on time, with the third and final part not arriving until a fortnight later. There were also delays with the delivery of other items and we were never informed until the night before, and there was always a two-week delay. As one of the delivery drivers explained, MFI changed their arrangements and instead of delaying a whole item for two weeks or so, they delivered what they had in stock and left people waiting for final and crucial parts! I have since vowed never to buy another item from MFI due to the inconsistency in the standard of service, prices and delivery of items.
L Griffiths-Davies, Aberystwyth, Wales

I went into a store yesterday and there were no customers and two sales assistants who looked very bored and who said the store was not properly stocked as they had not ordered enough stuff, the full range was not on display, but they hoped it would be sorted out in a week or two!
Giles Bowring, Settle, England

Terrible. Ordered a kitchen. Several key items did not arrive on the agreed date and several others were damaged. Left waiting for over 30 minutes listening to customer service elevator music. Second delivery also included damaged items. Third delivery ok. Over two weeks between first delivery and final receipt of all items. Lost money as kitchen fitters were left twiddling their thumbs. No compensation or apology offered.
Jonathan Cathie, Southampton, UK

We had a nightmare with our kitchen. A two-day installation of a kitchen from the Kentish Town branch of MFI turned into a four-month nightmare. First, they delivered the wrong fridge and took over two weeks to get the correct one. Second, no edging was delivered and no sealant put in. Fixing these problems took over four months of constant phone calls, with constant untrue promises that the remaining work would be finished in a week or so. After many irate coversations with head office and the branch, we got �350 compensation. Ironically, we are still receiving boxes of edging...
Michael Evans, London, UK

As FD (now redundant) of an ex MFI supplier, the problems aren't new.. if you know who the supplier is ring them directly. timing is crucial and the best time is probably Friday when they are scheduling the following week's production. ask for the production director/controller quoting your MFI order number if you have it.. good luck
colin gordon, Falkirk, Scotland

I'm really pleased to see this article - it just goes to prove that customers will vote with their feet. I ordered a mirror - due for delivery 6 weeks later. Asked my father to stay in that morning - for 6 hours. It didn't arrive - as I'd ordered it on the internet I had real trouble finding anything other than a contact email address. Anyway, eventually got a telephone number. The assistant said it had not been delivered to them and they were sorry for wasting my (dad's) time. Would be there in a fortnight. On the day of the second delivery I recevied a phone call at around 5pm (i.e. at least 5 hours AFTER it should have been delivered) saying it could not be delivered next week!! Apparently it had been moved to a 3rd delivery slot without telling me and now this was not going to be met. I told them to cancel the order. 6 weeks later and still no refund, just got my credit card company to sort it. Never again - and this is nothing to do with a new system installed - I had trouble with a bed being delivered 2 years ago, I just wished I'd heeded my advice from back then.
Jim Ryder, Knaresborough, North Yorkshire

I had a fitted wardrobe that was meant to be fitted in February. First of all the doors were 4 weeks late, then one was damaged and it took a further 3 months and 4 more damaged doors before it was all finished. Very poor service and the head office took 4 weeks to reply to a letter.
Mark Gomm, London

We have purchased quite a number of items from MFI over the years and generally have had no complaints with the service. This year was quite the reverse. We ordered some bedroom furniture for our son's room. The day before delivery was due, we received a telephone call and were told that one of the items, a 3 drawer chest was not available, but the rest of the order would be delivered as arranged. Sure enough everything else arrived. Trying to arrange delivery of the remaining item was an absolute nightmare. After numerous telephone calls, three separate delivery days were arranged. I took time off work waiting for the drawers to arrive and they never did. After waiting a further six weeks from the original delivery date, I actually collected them from the store. This was because I refused to take any more time off work. I loaded the parcel into my car, and decided to open it before I left to make sure everything was ok. The drawer top was damaged and that had to be re-ordered. Fortunately everything is finished now, and my son can now enjoy his room. Oh, by the way MFI I do miss listening to that music on the telephone, and "your call is important to us, please hold". Yeah right!
Roy Trembath, Leeds, United Kingdom

I have experiences common to most other people here - my kitchen was only partially delivered on the intended date, such that my kitchen fitter had to be cancelled. Having finally received the kitchen, and after having it fitted, I found that a few of the components ordered had been over specified and were therefore not required. I arranged to have the surplus items picked up so we could get a refund. The items were eventually picked up, but instead of the refund, we got the items that were originally picked up sent back to us about four weeks later!
Jonathan Thorpe, Winchester, Hampshire

I bought a bed and mattress from MFI; they were delivered through two separate systems on different dates. I took a day off for the base bed delivery: the driver left it outside the front of the house unsigned for and it was some hours before I realised. The mattress was booked to be delivered on one day - wasn't - rebooked another day - wasn't and finally delivered when it wasn't expected to be. Absolutely atrocious service.
Jonathan Wood, London

MFI are the best company I have ever dealt with. Their staff are very helpful and I have purchased my kitchen, bedrooms, bathroom, beds, lounge and dining furniture and even my home office suite from them. I have had no problems with their delivery service. In fact they were quicker than expected on most deliveries.
Harry Owens, Swindon, Wiltshire

Despite all the negative comments I have seen I have been pleased by MFI's delivery service. I placed an order for two complete bedroom suites - all items were delivered exactly on schedule and each item was in complete and perfect condition (and at half price too thanks to a sale :-).
Robert Heath, London, UK

Confirmed AM delivery date. At 18:30 evening before delivery due had phone call to say that two thirds of order would not arrive and too late to stop. Asked what would come and was told it was just doors for wardrobes, fronts of drawers and handles. Told could be up to 12 weeks before remainder delivered.
Andrew, Aberdare, South Wales

Having to purchase a kitchen in January 2004, I was promised a delivery date of March 04. March arrived and I was still missing items from the order. It was not until July that the final item had arrived, which caused me great inconvenience and a major cost as I had to cough up to my private builder. Calling customer services every day, you were held on the line for many minutes and not to think of the cost of the calls. Very disappointed and will not be using their services any more.
Mr Bhavin Patel, East Ham, London

I have just taken delivery of some stuff from MFI, ordered in Loughborough. The delivery date was agreed quickly in store, and all of the stuff came on time, in full, with no faults. I can't grumble.
Graham Beck, Nottingham, UK

I am still waiting for delivery of items ordered in June 2003!!
Claire Robins, Rochester, UK

We were given a delivery time of over a month for a "in stock" dining room table and 4 chairs (but they did arrive on time and complete!). I did ask if I was able to collect, but apparently not. The kitchen we ordered was given a delivery date of just under a month. However when ringing their automated number the day before to see if the delivery was AM or PM, the delivery date had suddenly been postponed by two weeks... a week after the MFI kitchen installer was due! However upon ringing a real person I was told that most of the order would arrive on the original date, just one drawer innard and a few cosmetic odds and ends missing. The installer was able to collect these from the store. The fridge they delivered had a bit of a flaw and didn't go cold. So had to wait another 3 weeks before we had a working fridge delivered. They were meant to take the broken one away (a fitted fridge), but MFI failed to tell us that it had to uninstalled first and had failed to organise someone to do this (I did pay for installation after all!). They also didn't organise anyone to fit the new one. I ended up doing it myself after another 3 weeks of waiting. The second attempt to take away the broken fridge didn't go very well either (3 weeks later) since they had no room on the lorry! So now have to wait another 3 weeks for another attempt. And now discovered the new gas oven doesn't get as hot as it should, so more phone calls to MFI... will it be any better?
Jonathan Corwin, Bury St Edmunds, Suffolk

Ordered goods in March, delivered in April incomplete. Month later some parts arrived damaged. Month later same part, arrived damaged again. Another month later side panels OK but still no backs. Another month later after tens of calls and emails, backs arrive, order now complete. Month later another set of backs arrive but no compensation even though they promised vouchers, I will not buy there again if I can help it.
Jeffrey Cole, Neath

MFI has the worst delivery service that I have ever come across!! We ordered a kitchen unit in February 2004 to be delivered in 8 weeks' time. It did arrive but with half the kitchen units missing. We called MFI customer service and 4 weeks' later the units arrived but again with missing doors!! The guy who was doing our kitchen decided to terminate his contract with us unless we paid him �200.00 more. So we rang customer service again and this time wrote a letter to MFI headquarters. Two weeks later, the missing doors and bolts arrived but the delivery man dropped one of the doors which broke!! We have written a letter for compensation of time and money spent due to the poor delivery of MFI, which as yet is still incomplete and we have had to do with whatever we can to finish the kitchen. MFI has really disappointed us and we cannot recommend anyone to order a kitchen from them.
Mrs Wambui Njau, St Albans




SEE ALSO:
Sales slump hammers MFI profits
22 Jul 04  |  Business
MFI shares hit by declining sales
20 May 04  |  Business
Sluggish sales hit MFI shares
05 Nov 03  |  Business


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