Unsettled consumer confidence, and “uninspiring” housing market, poor weather conditions and the continuing retail malaise has left United Carpets, the UK’s third biggest carpet retailer, breaking even in the six months ended 30 September.
The firm, which operates mostly on a franchise basis, said the business needed a positive market environment to flourish but this had “not been the case for some time”.
“In the face of further Brexit uncertainty and a snap General Election, the important trading period since 30 September has proven to be more difficult, with like-for-like sales for the 11 weeks since the period end 3.5% down,” said chairman Peter Cowgill. “While the board remain confident in the United Carpets model, the outcome for the full year could be significantly influenced by the ultimate conclusion to Brexit and also in the event of any prolonged period of significant adverse weather conditions. The board therefore remains cautious over the outcome for the full year.”
During the period under review, the group moved from a small loss to break even, with turnover increasing by 36.4% from £10.8m to £14.7m.
The group said that the significant rise in online shopping had affected all areas of the store-led retail market, including the flooring and beds sector, but the need for customers to visit stores for “big ticket” items meant it was afforded “some degree of protection”.
United Carpets operates from 60 stores across the UK, 48 of which are franchised, with 12 corporate stores. The group said its expansion was focused on finding the right sites rather than just seeking to increase the size of the store network and that it was looking for locations where a United Carpets store might excel and where it could match those sites with potential franchisees.
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