NEWS


of pound First half profits plummeted by 42% at Carpetright as the retailer suffered the consequences of the weak pound as well as a downturn in sales. Pre-tax


profits for the


months to October 29 stood at £4.1m, down by 42%, while like-for-like sales fell by 2.9% compared to the same time last year. Revenue decreased 3.8% to £222.3m.


Chief executive Wilf Walsh blamed the downturn on the collapse of the pound’s value since Brexit, which has boosted the cost of the goods it imports. He added that the retailer is currently facing “trading headwinds.”


Carpetright shut down six underperforming stores during the


trading period, bringing


its total to 429. It is also shifting its focus towards hard flooring in an attempt to cash in on the category’s double digit growth. By the end of the first half, the retailer had 49 stores trading under new brand identity, delivering sales growth


“above comparable


stores in the rest of the estate.” Plans are underway to accelerate the programme to 150 stores by the end of the year, which is 50% more than the original target.


Carpetright blames profit drop on fall


six


B&M has “best ever” Christmas but faces criticism


Discount retailer B&M delivered record sales over the Christmas trading period, with like-for-likes up 7.2% in the three months to December 24, but has warned that prices will still rise in 2017 due to the devaluation of the pound. Revenue at B&M was up


20% to £789.1m for the festive quarter, and 14 new stores were opened. The retailer said it was confident it would meet full-year profit forecasts. Said managing director Simon


Arora, “We have once again demonstrated the strength, relative appeal and popularity of our model at a time of uncertainty for consumers generally and continuing structural change in the retailing sector. “We


have best delivered ever Christmas our trading


and served over 5.5 million customers in a single week in the UK alone as we continue to


gain market share.” Meanwhile, the retailer came under fire recently for making 11 members of staff at its new Pwellheli store redundant unexpectedly on Christmas Eve. The employees, who all say they were given permanent contracts when the shop opened on November 23, have described the news as “a kick in the teeth” and said the redundancies were poorly handled by management. Another 11 employees also departed the store as their temporary contacts came to an end. B&M, which


pledged to


create 30 new jobs for locals when it opened its store in the north west Welsh town, said it was “unable to maintain such a significant head count.” Commenting on DIYWeek. net, Keith Singleton said, “I am disgusted at the treatment shown to staff by the multiples. No wonder they get so big so quickly. But it isn’t just their


B&M enjoyed a record breaking Christmas period, but recently came under fire for a round of redundancies


staff that they bully they do this to the majority of their suppliers as well. I run a small business and have done so for the best part of 50 years.


“I would never dream of treating my staff like so many


Garden centre faces closure after vicious arson attack


The cafe of family-run garden centre Acton Garden and Aquatic Centre in Long Eaton was recently the target of an arson attack which has left the owner “gutted and devastated” and facing possible closure. Derbyshire police have released


Carpetright has seen a rocky start to its financial year


CCTV footage of a man breaking into and setting fire to the cafe between 9.30pm and 10pm on December 4. The footage shows him pouring flammable liquid through the window and then


setting fire to it. He then runs away from the flames as the cafe is engulfed. The cafe has been completely destroyed. The garden centre’s owner Allan Humphreys has now said it looks likely the business will have to close. He said, “This has destroyed us. We’re a family business and we work very hard. It’s ran by all of us and we all chip in and help out and it’s something we have really enjoyed. “We’re just heartbroken. This


is our business. This is how we make a living. I don’t think the insurance will come close to being able to afford for us to get everything back running again. In the winter the cafe brings in about 80% of our trade. It’s a disaster. “We employ four people here,


three of us are family... I cannot see how we’re going to be able to carry on.”


He added that the family does not have the funds to start the business back up again.


Victorian Plumbing to launch appeal against Victoria Plum ruling


Online bathroom retailer Victorian Plumbing is set to launch an appeal against a recent


court case judgement in


relation to a claim brought against the company by rival Victoria Plum. The


the practice of bidding on competitor


revolved around brand names in


Google Adwords. The ruling effectively prevents Victorian Plumbing from bidding on their competitor’s brand name, as well as a middle-ground term. Despite this, Victorian Plumbing says it has gone on to enjoy a record November and December. The retailer has had its counter-claim for “passing-off” ruled in its favour, with the judge finding that Victoria Plum had


www.diyweek.net


acted unlawfully in this sense. Earlier last month the judge also gave Victorian Plumbing permission to appeal to the court of appeal. A successful appeal would mean Victoria Plum would need to repay any sums paid to it following the recent judgement. Victorian Plumbing managing


director Mark Radcliffe said: “Although the judge has ruled in our favour on the issue of the counterclaim, we do not agree with his decision on bidding activity. We think the impact is extremely unfair, particularly as it restrains the ability of my business to use its name. “It should not be forgotten


that we have used our name for more than 15 years, and


cattle. My staff are all friends and participate in the profits of the company and I would never dream of paying myself more than them. The greed show by the directors of some of the ‘sheds’ is breath taking.”


Black Friday boosts retail sales in November


The quantity of goods bought in retail was estimated to have grown by 5.9% in November compared with the same month the previous year, with all shop types showing growth. Non-store retailing did particularly well, with volume up 29% and value up 27.3%. The quantity bought grew by an estimated 0.2% compared with October, with household goods stores reporting that Black Friday had done wonders for business. The


value of goods bought


increased by 5.9% compared with November 2015.


Looking at household goods


stores, volume was up 6.7% on last year, with value up 6.1%. Average store prices decreased by -0.6% and average stood at £0.7bn.


sales


Victorian Plumbing is preparing for a high profile appeal against Victoria Plumb


began to use that name before our competitor began trading.” Victorian Plumbing does accept the familiarity between the


brand names, but


considers this to be isolated to name only, adding, “We have worked hard to establish our own brand, which is itself very different to any competitor.”


Black Friday contributed to a busy month for retail in November


20 JANUARY 2017 DIY WEEK 5


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