Bad start to year for Carpetright

4th Aug 2010 08:04

Sales fell at Carpetright during the first quarter, forcing the carpet and flooring retailer to take another close look at costs and spending.Like for like sales in the UK and Ireland dropped 3.4% in the 13 weeks ended 31 July compared with a 1.4% increase this time last year. The decline accelerated to 4.2% in the rest of Europe from 3.1% last time. Group sales slipped 2.5%, of which 0.6% was attributed to the closure of the company's business in Poland."We remain cautious about the outlook for consumer spending for the balance of the year and as a consequence continue to manage the business by exerting tight control over all costs, capital expenditure, stock and cashflow," said chairman and chief executive Lord Harris of Peckham."Gross margins in the UK are up on previous year largely a result of managing promotional activity."A trading update for the first half is planned for 27 October.