High street chains report sales slump
Updated on 06 January 2009
Two of Britain's biggest high street names have reported falls in sales over the Christmas period.
Next saw like-for-like retail sales slump 7 per cent between July 29 and December 24. The fashion chain refused to slash prices in the approach to Christmas and said it expected clearance rates to be ahead of last year after a good start to its sale period.
Meanwhile, department store Debenhams posted a 3.3 per cent drop in like-for-like sales for the 12 week period since October 21.
But this, compared with a decline of 4.2 per cent for the previous six weeks, meant profits for the 18 week period improved on a year earlier and the figures beat City expectations.
Out-of-town homewares group Dunelm reported "very robust" trading, particularly at the value-for-money end of the market.
And privately-owned fashion chain New Look - another firm which shunned early discounting - reported sales rose 2.8 per cent on a comparable basis with a year earlier.
BGC Partners' David Buik said of Next and Debenhams' updates: "In all fairness, they were probably better than expected and what is encouraging about both companies is the fact that both managements seem to be good housekeepers."
Debenhams chief executive Rob Templeman said: "Our trading strategy for the first 18 weeks of the year has resulted in further market share gains and a creditable sales performance given the extremely difficult and volatile conditions seen across the high street."
He added: "More than ever consumers are looking for high quality products at good value prices.
"Debenhams has supplied this during the important Christmas trading period through ongoing improvements to our designs and products made over the past 18 months alongside tactical promotional activity."
But Next's finance director David Keens warned a weaker pound is likely to drive up prices this year.
"It has been a very, very tough five-month period. In particular the months between mid-October and mid-December. You have got to go back to the early 1990s to see a period as difficult as this for our retail business," he said.
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