Carpetright sticks to expansion plan
Retail group Carpetright stuck by its store expansion plans today despite reports that the UK market for floor coverings had shrunk by as much as 20%.
Carpetright, which has 376 stores, said it was on track to add 75 stores to its UK and Ireland portfolio within three years and it was capturing market share as the spending slowdown forces smaller rivals out of business.
Investors also took heart from its target of growing margins this year even though rents and business rates are expected to rise by around £7m (€10.5m).
Details emerged as the firm reported a 4.1% fall in underlying profits to £62.3m (€93.6m) during the year to April 30 – a better performance than many in the City had been expecting.
Retailers selling big ticket items such as carpets have borne the brunt of the slowdown in spending, with fewer people wanting to renovate their homes since the end of the housing boom.
Floors 2 Go shocked the market at the end of last week by warning that like-for-like sales in the second quarter had dropped by 20% on the back of promotional offers on laminate flooring by DIY superstores.
The spending slowdown claimed another casualty last month when Larry’s Laminate Land, which operated five flooring stores in the Glasgow area, went into receivership with the loss of 25 jobs.
Carpetright said the current turbulence in the market was an opportunity for it to strengthen its position.
Lord Harris, chairman and chief executive, said: “We are not downbeat at all. We are taking market share and it’s always during difficult times that you can build a business.”
