Member Article

Carpetright bolstered by store revamps

Essex-based Carpetright plc reported like-for-like sales revenue increase of 0.7%, driven by store revamps.

The chain retailer refurbished 58 stores in the 26 weeks to the end of October, and Group underlying profit rose to £5.4m.

In a trading statement, the company stated conditions have been difficult in the Netherlands, with weak performance of floor covering and overall deterioration of consumer confidence.

Over the first half of the year Carpetright closed 10 stores, bringing its total to 480.

Chief executive Darren Shapland thought conditions would remain challenging, but expected the company to reach end of year expectations.

He said: “The Group grew underlying profits and generated cash in line with our expectations during the first half, with an encouraging increase in UK retail store like-for-like sales and a significant improvement in gross profit percentage year on year, although trading conditions in the Netherlands remained very difficult.

“Having been with the business for seven months and seen it trade through the important September to November peak has confirmed my initial view that the Group is well managed and that no fundamental shift in strategy is required.

“That said, we believe there are opportunities to accelerate the pace of a number of current self-help initiatives, notably the ongoing modernisation of the store estate, building customer awareness of our bed offer and further improving customer service, to enable us to grow our market share.”

This was posted in Bdaily's Members' News section by Tom Keighley .