Beales group sales fall due to store closures
Beales has reported that total group sales including concessions and VAT were 0.6% lower in the 19 weeks to 13 September and 3.5% lower in the 45 weeks to 14 September compared with the same periods last year.
The chain of department stores said the sales decreases included the impact of its decision to close a number of loss-making stores on cessation of leases and the exit from one store due to a landlord site redevelopment on cessation of the lease.
Meanwhile, like-for-like sales including concessions and VAT were 1.7% higher for the 19 weeks to 13 September but 1.1% lower for the 45 weeks to 13 September, compared with the same period a year earlier.
Beales said in a trading statement: “The cessation of ‘mega’ promotions which in the prior year generated heightened sales at little or no margin, the exit from the TV/Audio sector, and the slow start to the current financial year on the back of lower disposable incomes, pulled sales lower.”
However, the company said an improving macro-economic environment and a more positive consumer, aligned with a more consistent seasonal weather pattern in the second half of the year, had improved trading.
Beales said it had made “significant strides” in taking the Beale brand back to its core values of a local high street department store in the period and that this was reflected in the ongoing sign up of its loyalty card members which now total over 350,000.
Chief executive Michael Hitchcock said: “I truly believe the high street in the UK can survive and thrive with a local trusted and quality driven offer, which emanates theatre and personality. The early signs of the blood, sweat and tears that our people in our business have given up, are starting to positively show through.”
Beales operates 29 department stores across England.
