CI Traders to expand Marks & Spencer franchise
Overall trading conditions still tough
January 23 2004
CI Traders is to transform one of its Jersey grocery stores into a new Marks & Spencer Foodhall as it extends its franchise deal with the UK retailer.
CI Traders, the Channel Islands’ biggest employer, has extensive retail, pub, hotel and leisure interests on Jersey and Guernsey. It operates the upmarket Le Riche department store as well as operating the M&S franchise on Jersey.
The company said the Benest grocery chain on Jersey, acquired last year, has traded ahead its expectations, and one of these units will be converted to the M&S food only format.
CI said that in the in the 22 weeks to January 3, like-for-like sales at Le Riche’s Stores grew by 5.2 per cent, while like-for-likes in the Marks & Spencer Jersey franchise were up 10 per cent.
However, the company warned that overall trading conditions in the Channel Islands, which relies heavily on high spending locals and visitors, have been more difficult. Sales at its new new franchise store for the Mango clothing brand were disappointing, with sales tailing off after the stores’ opening in September.
Overall group sales were up 8.5 per cent 6.2 per cent like-for-like. The hospitality businesses saw an overall sales increase of 2.2 per cent, with a 0.4 per cent like-for-like decline. Pubs on the smaller island Guernsey performed more strongly than those on Jersey pubs. CI Traders has been awarded the licence to develop Guernsey’s first and only casino, at its St Pierre Park hotel complex.
The company said: “There are no signs of any improvement in trading conditions in the foreseeable future and we are preparing for a time of subdued demand across all our Channel Island businesses.”
