MERCHANT Retail, owners of The Perfume Shop and Joplings chains, has celebrated an "outstanding" Christmas performance after like-for-like sales surged 14 per cent.

The figure was accompanied by a 27 per cent increase in all sales at its 75 outlets.

Merchant Retail Group, which owns the perfumery retailer and Joplings in Sunderland and Robbs of Hexham, said the seven weeks to January 5 confirmed its confidence in the future.

Like-for-like sales from The Perfume Shop were up 13 per cent during the 40-week period to last Saturday.

Merchant Retail is committed to opening stores in Ballymena, Northern Ireland and in Nottingham. It is negotiating on four other sites.

The company has about 12 per cent of the UK perfume market, but Jeremy Siegal, managing director of the Perfume Shop chain, said the aim was to reach 20 per cent.

Joplings also improved its Christmas return with a like-for-like sales gain of five per cent.

He said: "What we have learned is that fragrances are not a discretionary buy. Perfume is a must-buy item."

The company is currently considering whether to create a similar business to The Perfume Shop within the cosmetics and skincare market.

A trial store is due to open in Jersey later this year.

Merchant Retail's department store business Joplings also improved its Christmas return with a like-for-like sales gain of five per cent.

With foot-and-mouth affecting the area around two of its stores in Hexham, the company said it had been an excellent performance.

Merchant Retail's De Gruchy department store in Jersey saw a like-for-like sales rise three per cent during the festive period.

Overall, group sales were up 18 per cent during the festive period with the figure ten per cent higher on a like-for-like basis.

Merchant Retail chief executive Philip Newton, said: "We are confident that, barring any unforeseen circumstances, current market profit expectations will be met."