Carpetright sales impacted by restructuring
Carpetright has reported that sales declined in the first half of its financial year after trading was impacted by the disruption caused by its restructuring.
With the second half of the six months to 27 October seeing the process commenced in earnest, this led to like-for-like sales remaining negative in the period although there were signs of an improvement in sales as the activity began to take effect.
During the six-month period, Carpetright closed 67 underperforming stores, 65 of which were in the UK. It is also expecting to close a further six stores by the end of the year.
Looking at its performance in its Rest of Europe business, which includes The Netherlands, Belgium and the Republic of Ireland, Carpetright said trading has been slightly ahead of the same period last year.
Wilf Walsh, Carpetright chief executive, said: “This is a transitional year for Carpetright as we work through our restructuring plan. I am pleased to report that this activity is firmly on track and has started to yield benefits as we create a right-sized and well-located portfolio of stores on sustainable rents. We also continue to modernise our existing estate as well as investing in our digital capability.”
The retailer has also announced that Andrew Page will be standing down as non-executive director on 31 December and that the company has begun a search for his successor.
Bob Ivell, Carpetright chairman, said: “The board and I would like to thank Andrew for his support and significant contribution to Carpetright since his appointment in 2013, during which time the company has benefited greatly from his wise counsel. We wish him well in all his future endeavours.”
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