Beales struggles in heatwave
Sales continue to suffer as customers swelter
August 20 2003
UK department store operator Beales is continuing to struggle in a tough market.
Beales, which operates 12 stores mainly in the south of England, said that its sales have suffered further as a result of the extended spell of hot weather. This has significantly reduced footfall in recent weeks, resulting in the need to “re-evaluate expectations.”
Having previously reported a 2.5 per cent year-on-year fall in sales for the six weeks to June 14, Beales said that in the seven weeks of the summer sale to the end of July, like-for-like sales declined by 8 per cent, despite discounting. The increased markdowns combined with the sales shortfall have resulted in profits being significantly below expectations.
Beales said it anticipates that like-for-like sales for the remainder of the financial year to continue at a lower level than last year, although it hopes that the return of more normal weather will boost sales of its Autumn and Winter collections.
The company said it is “confident that control measures already in place will provide for effective stock management and that the benefits of the recent re-structuring and on-going re-positioning of the business will reverse this trading shortfall and lead to profit growth next year.”
