House of Fraser upbeat about consumer spending

Department store group House of Fraser said today it saw no reason to scale back forecasts in the wake of the US terrorist crisis.

The company, which has 51 stores around the UK, reported that confidence on the high street had not yet been dented.

John Coleman, chief executive, said: ‘‘While we cannot quantify any possible future adverse impact from recent world events, we are currently confident both of a strong outcome for the full year and that we have the base for sustained growth.’’

The group said like-for-like sales were running 4.7% ahead in the eight weeks to Sunday, with the figure largely unaffected by the attacks.

David Adams, deputy chief executive, believed House of Fraser was less exposed than some of its rivals to demand from foreign tourists.

He added: ‘‘The first few days there was a downturn as people watched events unfold on television.

‘‘But we have just had a strong weekend. It may be that people will choose to stay in this country and shop rather than travel abroad.’’

The comments came as House of Fraser reported a ‘‘strong performance’’ in the six months to July 28.

Like-for-like sales rose 7.1% during the half-year, with pre-tax losses narrowing from £6.6m to £4.3m.

Turnover lifted to £424.5m from £364.5m last time.

The results were boosted by a 120% hike in sales at the refurbished Oxford Street store in London and a 50% rise at a new-look Guildford outlet.

There was also double digit sales growth in the Bluewater and Reading stores during their second year of trading.

In particular, House of Fraser’s designer labels proved popular as like-for-like fashion sales across the group increased 8%.

Brands introduced during the period included Boss, Mulberry, Pringle and DK Signature.

Another six House of Fraser outlets are due to open in the next four years, starting with stores in the City of London and Dublin in 2003.

They will be followed by shops in Croydon, Maidstone, Norwich and High Wycombe, with contract negotiations ongoing on two or three other stores, Mr Adams added.