Demand for digital technology today helped electricals retailer Kesa report a 3.9% rise in like-for-like sales at its Comet chain over Christmas.
The former arm of B&Q group Kingfisher enjoyed stronger sales across all its businesses as a weak performance in November was overcome in December.
Sales of digital products, flat-screen televisions and multimedia technology contributed to a 3.6% improvement in turnover at its 251-strong chain of Comet stores between 2 November and 3 January.
Like-for-like sales at Comet were up 3.9% compared with relatively flat growth at the group’s other stores on the Continent.
But Kesa said reduced turnover from extended warranties in the UK following a Competition Commission inquiry last year had put a squeeze on margins over Christmas.
Sales increased 4.5% during the period across the group, which also includes French chains Darty and BUT as part of a network of 790 outlets in seven European countries.
Chief executive Jean-Noel Labroue said: “The positive sales trend seen in December has continued into January and, with our continued programme of cost control, we are confident that we will deliver results in line with market expectations.”
In a trading update ahead of its full-year results in March, Kesa said continued weakness in the French furniture market had put pressure on margins during the festive period.
A strengthening of the pound against the euro during 2003 had helped its chains in continental Europe post turnover growth in the double digits.
Growth was highest at its 269-strong chain of BUT stores where turnover rose 21.9% year-on-year, but by 10.1% when stripping out beneficial exchange rates.
Total group sales grew by 10.8% in sterling terms but 4.5% after taking the stronger pound into account.
Like-for-like sales slipped 0.2% at BUT during the period while growth at its 194 Darty stores was a modest 0.3%.
References: EGi News 27/01/04
