Comet sees slump as sale nears
19 January 2012 10:11
A poor performance in Boxing Day clearance tightened the squeeze on electricals chain Comet today after it reported a 15% slump in sales. The company, which is due to be sold to retail turnaround firm OpCapita on February 3rd, experienced an improving sales trend before Christmas but this was offset in the days leading up to New Year.
Revenues between November 1st and January 8th were down by 14.5% on a like-for-like basis, whilst sales generated through its website were flat.
It is the latest trading blow for the chain, which operates 248 stores and has about 10,000 staff in the UK. The business recently posted losses of £22 million for six months trading after revenues slid by more than 18% on a same-store basis in the face of the consumer spending squeeze.
Comet's current owner Kesa Electricals recently called time on its ownership by agreeing to sell the chain for £2 in a deal that will still see it pump £50 million into the business and take on the firm's pension scheme.
It revealed today that the current performance meant that net debt in the Comet business will exceed the agreed threshold by up to £15 million.
The Comet sale will enable Kesa to focus on its other European businesses including the Darty electricals retail business in France.
Kesa said Darty France's like-for-like sales were 4.7% lower in the period, although it added the business continued to outperform a weaker than expected electricals market. Demand for televisions has been poor, offset by strong sales of multi-media products.
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