It is going to be a busy week for the UK retail industry as a sting of traders report on their Xmas performance.
First up today,already under pressure HMV which has seen its sales fell 8.2 percent in the five weeks to December 31.
The group were on the brink during last year,with falling profits,saddled with 164 million pounds of debt and facing intense competition from online music sales,can take at least a glimmer of hope from the results.
The results were an improvement on like-for-like sales which were down 13.2 percent in the seven weeks to December 17,although analysts are pointing out that Xmas Eve falling on a Saturday helped that comparison.
According to Chief Executive Simon Fox,"The continuing actions to focus the business and to expand our technology offering are beginning to show through, adding that
"We are seeing a combination of a slowing of the decline in music and film, and acceleration in the growth of technology. Undoubtedly trading conditions and the consumer environment remain challenging, but we remain confident in HMV's future prospects
Meanwhile grocery chain Morrisons is forecasting a tough 2012 after reporting a slowdown in sales growth over Christmas.
The figures have surprised analysts who believed that the chain's strength in fresh food coupled with its lesser dependence than it rivals on consumer goods would see it reap the benefit of consumer cutbacks
Sales at stores open over a year rose 0.7 percent, excluding fuel and VAT sales tax, in the six weeks to January 1 but that was down from 2.4 percent growth in its fiscal third quarter.
Showing posts with label high street sales. Show all posts
Showing posts with label high street sales. Show all posts
Monday, 9 January 2012
Monday, 19 December 2011
HMV faces the double whammy of falling sales and digital migration
The battle for to cling onto sales on the high street continues this morning as music retailer HMV has announced this morning that it made an underlying pretax loss of £36.4 million pounds in the 26 weeks to October 29,£9m more than the same period last year.
Whilst telling the city that it has adequate resources to continue trading across the Xmas period and into the foreseeable future,it added that the economic environment and trading circumstances create material uncertainties which may cast significant doubt on the group's ability to continue as a going concern in the future.
Battling against music's move online the Company also faces intense competition from supermarkets and internet retailers.
Back in June,the company was forced into a £220 million refinancing deal with banks and sold its Waterstone's book chain and a Canadian arm to cut debt.
However as consumer confidence falls with sales at stores sales over a year down 11.6 percent,it is be relying on Xmas to boost both sales and turn stocks into much needed cash.
The group has tried to diversify into technology,transforming its stores into selling tablets,docking stations and moving into the top end of the headphones market but with others stores such as Comet finding that market tough,it will be interesting to see just how sales revive in this important part of the year
Whilst telling the city that it has adequate resources to continue trading across the Xmas period and into the foreseeable future,it added that the economic environment and trading circumstances create material uncertainties which may cast significant doubt on the group's ability to continue as a going concern in the future.
Battling against music's move online the Company also faces intense competition from supermarkets and internet retailers.
Back in June,the company was forced into a £220 million refinancing deal with banks and sold its Waterstone's book chain and a Canadian arm to cut debt.
However as consumer confidence falls with sales at stores sales over a year down 11.6 percent,it is be relying on Xmas to boost both sales and turn stocks into much needed cash.
The group has tried to diversify into technology,transforming its stores into selling tablets,docking stations and moving into the top end of the headphones market but with others stores such as Comet finding that market tough,it will be interesting to see just how sales revive in this important part of the year
Wednesday, 14 December 2011
Blow to the high street as Thomas Cook announces 200 store closures
Just a day after the Portas report into our high streets and Thomas Cook's results this morning show just how dire the situation is.
The firm which delayed its results announcements earlier,having to get emergency funding to tide it over the Xmas period has reported losses of £398m for the year and it will close 200 of its under performing shops in Britain with a loss of over 1,000 jobs.
In an interview on Radio 4 about an hour ago,chief executive Sam Weihagen told the programme that the business had been hit by people booking holidays on the Internet as well as problems caused by the Arab spring and floods out in Thailand.
But in contrast, the world's biggest tour operator TUI Travel reported a better-than-expected full-year profit last week, boosted by strong online sales and demand for exclusive resorts.
Weihagen pledged that the closing of stores is part of a turnaround plan which will enable it to deliver annual profit improvements of £110 million.
Earlier this week,the group sold Spanish hotel chain Hotels Y Clubs De Vacaciones in order to reduce its debt
The firm which delayed its results announcements earlier,having to get emergency funding to tide it over the Xmas period has reported losses of £398m for the year and it will close 200 of its under performing shops in Britain with a loss of over 1,000 jobs.
In an interview on Radio 4 about an hour ago,chief executive Sam Weihagen told the programme that the business had been hit by people booking holidays on the Internet as well as problems caused by the Arab spring and floods out in Thailand.
But in contrast, the world's biggest tour operator TUI Travel reported a better-than-expected full-year profit last week, boosted by strong online sales and demand for exclusive resorts.
Weihagen pledged that the closing of stores is part of a turnaround plan which will enable it to deliver annual profit improvements of £110 million.
Earlier this week,the group sold Spanish hotel chain Hotels Y Clubs De Vacaciones in order to reduce its debt
Tuesday, 6 December 2011
Bad news on the high street as sales fall in November
Retail sales continued to fall in November despite "panic" levels of discounting on the high street, a monthly survey has found, spelling more gloom for the sector.
BDO's High Street Sales Tracker saw like-for-like sales fall 1.7 per cent last month, as unseasonably warm weather hit fashion sales, which dropped 1 per cent.
Non-fashion slumped 3.1 per cent and homewares was down 2.6 per cent.
BDO said the drop in sales came despite heavy promotion activity to pull in cash-strapped consumers, which is on a par with "panic sales" of 2008 and is expected to hit retailers' profit margins.
Don Williams, national head of retail and wholesale at BDO, said: "Throughout 2011 we've seen the high street polarising between high performers and strugglers.
"The former are surviving despite the tough climate, but the latter have found failing to offer consumers high levels of service and innovative, new products at the right prices is a quick route to very quiet tills."
Source PA
BDO's High Street Sales Tracker saw like-for-like sales fall 1.7 per cent last month, as unseasonably warm weather hit fashion sales, which dropped 1 per cent.
Non-fashion slumped 3.1 per cent and homewares was down 2.6 per cent.
BDO said the drop in sales came despite heavy promotion activity to pull in cash-strapped consumers, which is on a par with "panic sales" of 2008 and is expected to hit retailers' profit margins.
Don Williams, national head of retail and wholesale at BDO, said: "Throughout 2011 we've seen the high street polarising between high performers and strugglers.
"The former are surviving despite the tough climate, but the latter have found failing to offer consumers high levels of service and innovative, new products at the right prices is a quick route to very quiet tills."
Source PA
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