Angela Jameson
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Strong demand for laptops and flat-screen TVs helped electricals chain Comet deliver a slim increase in sales today but its parent company gave warning of “difficult trading" ahead.
Comet, which is part of European group Kesa Electrical, reported a 0.4 per cent improvement in like-for-like sales in the year to January 31. The group said sales of large white goods such as fridges and freezers were weaker during the second half as consumers tightened their spending.
Jean-Noël Labroue, Kesa chief executive, said the group had delivered “excellent” sales growth but warned: “As consumer confidence declines, we are anticipating difficult trading conditions ahead."
Mr Labroue said that In the six weeks since January 31, group like-for-like sales were flat compared with 3 per cent growth for the 12 months of the last financial year.
“In the current consumer cycle, white goods are very volatile and it's difficult to predict exactly what will happen for the rest of the year. As we see it, the current trend in sales is set to continue,” Mr Labroue predicted, although he suggested that the downturn would not last for long.
Kesa said that it would be "more focused than ever” on maximising margins and cost control.
Retail profits for Comet dipped 4.1 per cent to £44.2 million for the year, after a one-off £3.5 million boost from the sale of a store in Leicester. Total sales of £1.73 billion were up 3.3 per cent.
Comet sales generated through the internet climbed by 23.1 per cent, helped by a "click and collect" concept whereby customers choose their product online and collect it from a local store. The group has been repositioning itself as a PC-specialist and launched laptop support for home and small business customers last year.
Kesa's French business, Darty, saw retail profits fall by 6.2 per cent to €158.2 million (£124.4 million).
Darty, with around 200 stores across France, accounts for 70 per cent of group profit excluding BUT. Its shares have fallen more than 10 per cent in the past month, compared with a 7.9 per cent fall for the DJ Stoxx index of European retailers.
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