DREAMS

Business turnaround

About the brand

Dreams is one of the UK’s leading bed retailers and manufacturers. It has 170 stores throughout the country. Pragma was asked by the company’s lenders to review, validate and suggest any necessary amendments to the management’s business plan and operating model. Subsequently, we worked with management to define the brand framework.

About Dreams
Challenges for Dreams

The Challenge/Task

Dreams’ management asked Pragma to support a turnaround of the business and define the Dreams brand framework.

Pragma undertook an extensive work programme that included an intensive business evaluation, a thorough review of operational performance, qualitative research and a new brand framework

What We Did

Intensive business plan evaluation and operational review

Management interviews and review of operational performance

For the brand framework specifically, we mixed shopper and employee insight by completing customer focus groups and staff workshops to inform brand proposition development

Estate optimisation, including both micro and macro location analysis

Dreams posted a 207% jump EBITDA in the year to December 23, 2015. Like-for-likes in the period rose 19.4%, as the second-half outperformed the first. Total sales climbed 16.2% to £234.2m.

Dreams Results

The Result

Pragma’s recommendations helped to increase conversion significantly, and optimising the store estate.

Our conclusions formed the basis of the turnaround plan that the business put in place in 2012, and continued to implement following the sale of the business in March 2013 to Sun European Partners. The turnaround plan saw the business to increase like-for-like sales significantly, and return to profitability in 2014.

Dreams posted a 207% jump EBITDA in the year to December 23, 2015. Like-for-likes in the period rose 19.4%, as the second-half outperformed the first. Total sales climbed 16.2% to £234.2m.

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