Beales hit by difficult trading
Department store operator issues warning on full year
June 14 2003
UK regional department store operator Beales has warned that tough trading conditions will hit profits this year.
The ongoing problems are strong evidence that consumers are cutting back on spending at the top end of the market in particular. Bournemouth-based Beales operates 12 stores, mainly in the south of England, with a focus on premium brands.
At its annual meeting in March, Beales said sales in its nine core Beales-branded stores were cumulatively 3 per cent across the first 19 weeks of the current financial year.
The latest announcement said that “difficult trading conditions in recent weeks have resulted in the need to re-evaluate expectations.”
Lower sales have put pressures on margin, and the company said it sees “little indication that these trends will alter.” First half results will be below expectations and Beales said expects the trading problems to lead to a more significant shortfall on expectations for the second half.
Beales expanded last year with the purchase of former Bentalls stores in Worthing, Ealing and Tonbridge, following the purchase of the rival chain by Fenwicks.
