Group defies retail gloom with policy of ‘self-help initiatives’

The floor coverings group, which owns Sunderlandbased Storey Carpets, produced another improvement in sales as its strategy of store refits and expanded ranges continues to pay off.

Carpetright closed four stores during the third quarter, leaving it with 476 branches of which 122 are now modernised.

The retailer, which is regarded as a bellwether of the housing and home improvement markets, said likefor- like sales were 3.2 per cent higher in the UK in the 13 weeks to January 26.

This was faster than the rate of 0.7 per cent seen over the previous half-year, although the company’s progress in the UK has been offset by more dismal trading in the rest of Europe, where likefor- like sales were down 11.5 per cent.

As the group enters the peak spring season for home improvements and house moves, recently-appointed chief executive Darren Shapland said the company was on track to meet profit expectations for the year.

It made profits of only £4m in its most recent financial year, compared with £62m in 2008.

Mr Shapland took over from veteran boss Lord Harris of Peckham early last year and has stepped up what he called “self-help initiatives”.

He said: “We believe this performance reflects the success of our programme of selfhelp initiatives, including the development of our bed business, introduction of our laminate range to more stores and the ongoing programme of store refurbishments, all of which gained momentum in the period.”

By the end of the financial year in April, Carpetright expects to have 180 stores – 40 per cent of its UK store estate – under the new look, with a more contemporary feel.

Outside the UK, the company has seen continued sales weakness in the Netherlands, where it has 95 stores, against solid performances in Belgium and Ireland. As a result, total group sales were down 1.6 per cent in the quarter.

The group employs about 3,000 people across its operations in this country, Ireland, Belgium and the Netherlands.