DFS plans a soft landing from hard Brexit as it brings manufacturing back to Britain

Sofas seller DFS has brushed off fears over the plunging pound, saying it will manufacture more on home soil to counteract potential “cost pressures”.

Sterling slumped to a three-decade low against the dollar this week on fears of a “hard Brexit”, raising the prospect of higher bills for retailers that do much of their buying in the US currency.

DFS chief executive Ian Filby said the company’s exposure to the dollar is relatively low at around £4 million and DFS had a strategy that “stops the temptation to move prices”.

“There are a number of rebalancing decisions we can do around sourcing, across major suppliers and changing locations,” Filby explained.

“We have flexibility to bring a lot of manufacturing into the UK and are a lot less Far East dependent.”