Fraser benefits from new stores
Department store chain House of Fraser today said its sales performance had been boosted by new store openings and the integration of the Jenners and Beatties department stores into the business.
Like-for-like sales were down 2.4% for the 19 weeks to June 10, largely as a result of a cut in promotions this year, the firm said.
But total sales were up by 8.8%, driven by the expansion of the business, which is being eyed by Icelandic investment group Baugur for a potential £351m (€514m) takeover.
Chief executive John Coleman said: “In March we said that we anticipated that the trading environment would remain difficult for the first half of 2006 and that we expected to experience further cost pressures. This remains our view.”
House of Fraser confirmed on Friday that it was in discussions with Baugur over a possible takeover deal.
The group said Baugur has offered 148p a share for Fraser but the process was still at an early stage.
Baugur already has a wide range of UK retail investments, including Hamleys and the Iceland supermarket chain.
