Carpetright sales down in tough market
Drive for expansion continues
Carpetright has seen UK sales decline across the second half of the year, focusing on improved margins and its store expansion programme to keep the business on track.
In a trading statement covering the 25 weeks to April 23, issued prior to its year end on April 30, Carpetright said its UK and Ireland business saw a total sales decrease of 3.8 per cent across the half, with like-for-like store sales down by 5.9 per cent. Gross margin has increased by 0.9 per cent compared to last year.
The business also saw a “small shortfall in sales and profits” following department store group Allders’ move into administration in January. This saw 21 Carpetright concessions closed. The business now has 26 concessions in total, 16 in Debenhams, eight in BHS and two in the remaining Allders stores.
The company said while this closure caused some short term trading disruption, “the move to stronger trading partners should improve performance going forward”.
The business now trades from 375 stores, with 31 in its new small store format and 17 now trading in Ireland. A strategy of moving from A1 retail sites to bulky goods parks has continued and “will once again generate additional profits for the group”.
The Belgium and Netherlands business has seen total product sales in local currency fall by 0.6 per cent compared to last year, with gross margin continuing to increase.
[img r]carpetrightlordharris.jpg[/img]Chairman and chief executive Lord Harris of Peckham said: “Our UK and Republic of Ireland business has had a difficult half within a weakening consumer environment and set against strong comparatives last year.
“However, we continue to grow margin and our store expansion plans remain on track. The business has once again generated good profits from the development of our portfolio of retail sites.
“Our business in Belgium and Netherlands has continued to make solid progress. Whilst the trading environment has become more difficult in recent months we believe that our strong competitive position and further expansion plans will enable the business to continue to grow market share.”
