Comet-owner fades in France

A modest pick-up in sales at electricals firm Comet was overshadowed today by continued pain at its owner’s French business.

Shares in Kesa Electricals were 4% lower as it warned annual results would come in at the lower end of market hopes after French chain But remained victim to tough trading over Christmas.

Within the UK, Comet’s 2% fall in like-for-like sales between November 1 and January 8 was an improvement on the previous 3.1% decline – but there was a shift towards products with lower profit margins.

Customers snapped up items such as flat-screen televisions which typically earn less money for retailers, rather than more lucrative traditional goods like fridges and washing machines.

The sales figures were easily outstripped by rival DSG International, which yesterday reported an 8% gain at Dixons and a 3% rise for Currys over the eight weeks to January 7.

Analyst Richard Hunter at stockbroker Hargreaves Lansdown said: “I think the main difference is what Comet have admitted today, that sales were related to lower margin products. The ones they make the money on just haven’t been shifting.”

He said stronger showings from the likes of Dixons were putting rivals in the shade, adding: “Competition is so fierce it really is survival of the fittest.”