Published on 27 - October - 2010
Sales slide at Carpetright in "difficult market"Carpetright has reported a decline in group sales of 5.2% for the 12 weeks to October 23, 2010.
The year-on-year effect of closing its operations in Poland accounted for 0.5% of this decline, according to a trading update released today, while the group's store base decreased by two to 702 at the end of the period.
Sales in the UK and Republic of Ireland declined by 4.6%, with like-for-like sales down 7.3%. A net four stores closed, taking the portfolio to 584.
The company has continued the roll out of its bed offer, opening 44 bedding departments within its existing UK estate since the start of the financial year. A further 50 are planned to open by the end of April 2011.
Chairman and chief executive Lord Harris of Peckham said: "The tough trading environment in the UK and Republic of Ireland continued into the second quarter of or financial year. The further reduction in mortgage approvals along with fragile consumer confidence has produced a difficult market. We expect these market conditions to continue into 2011."
He added: "We expect the full year UK margin to increase by around 30-50 basis points through a combination of price and promotional management. The focus on effective cost management has continued. The group remains well placed to capitalise on opportunities when economic conditions improve."
Carpetright will report its interim results for the first half of its financial year on December 14.
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