Electrical retail chain steeled for tougher trading

Strong demand for laptops and flat screen TVs helped electricals chain Comet deliver a slender sales rise today but its parent warned of “difficult” trading ahead.

The chain, which is part of European retail group Kesa Electricals, achieved a 0.4% improvement in like-for-like sales in the year to January 31.

This compares to like for like sales growth of 0.9% for the first six months.

The group said sales of large white goods such as fridges and freezers were weaker during the second half amid a spending slowdown.

Kesa chief executive Jean-Noel Labroue said the group had delivered “excellent” sales growth but warned: “As consumer confidence declines, we are anticipating difficult trading conditions ahead.”

The European-based company would be “more focused than ever” on maximising margins and cost control, he added.

Retail profits for Comet dipped 4.1% to £44.2m (€56.3m) for the year, with last year’s figure including a one-off £3.5m (€4.46m) boost from a store sale. Total sales of £1.73bn (€2.2bn) were up 3.3%.