Blacks suffers like-for-like fall after tough May
21 July 2010 09:46
Blacks Leisure has seen like-for-like sales fall in the 17 weeks to the end of June, primarily due to falling sales in May, when trading conditions were particularly difficult. In the other months of this financial year to date, sales from the ongoing estate were broadly in line with expectations.
In a trading update, the company said that like-for-like sales had fallen 7.5% in the current financial year, with group sales at £53.9 million compared with £76.9 million last year. This reduction is largely as a result of the 107 stores closed in the company's lifesaving restructuring programme last year.
Following a fund-raising initiative in March, which raised net proceeds of £19.7 million, the group said it had made "very good progress" with its new store opening programme.
It has thus far opened seven stores (in York, Chester, Stratford upon Avon, Cheltenham, Cambridge, London Regent Street and Belfast, all within the Blacks fascia) and has a pipeline of an additional eight planned stores between now and the end of the current financial year.
Blacks said that the performance of these new stores was "very encouraging" with sales per square foot being on average 39% above the rest of the ongoing estate.
Blacks also announced today the appointment Tom Knight, chief executive of JJB sports from 2002 to 2007, as a non-executive director.
On future trading, the company added: "Despite the adverse trading conditions in May the board is encouraged by the progress on the new store programme and confident that the plans for the critical winter trading period are well advanced.
"These include a number of initiatives such as the launch of a customer loyalty card, a significant store training programme and a range of new branded lines which will be exclusive to Blacks."
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