CMO Group sales impacted by poor weather in first quarter
CMO Group, the UK’s largest online-only retailer of building materials, has reported a drop in first half sales following the impact of poor weather in its first quarter.
Sales fell to £30.3 million in the period from £36.9 million at the same time in the previous year after trading was particularly soft in its tiles business.
However, the group has seen an improving sales trend throughout July and its second quarter. This has included a strong performance by its the Plumbing Superstore where like-for-like sales increased by 9.6% in July.
CMO said it is continuing to focus on improving product margin, maintaining carriage cost recovery, as well as bringing digital marketing spend down to or below 6%. It has also launched a new loyalty programme called ‘Super Rewards’ which the group said is performing well.
Dean Murray. chief executive of CMO Group, said: “We are pleased to see early signs of market recovery and are further encouraged by the interest rate cut last week, which will stimulate the market.
“The positive sales momentum shown throughout Q2 and into July, combined with our focus on profitable sales and becoming a more efficient business, means that we remain confident about the future.”
