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Kesa upbeat despite sales malaise
The company's French chains battle retail slowdowns, while UK Comet stores tackle a downturn in warranty sales and the loss of trade to supermarkets.
Kesa, the electricals and furniture business spun off from Kingfisher in July, said it had emerged from the demerger in "good shape" despite admitting widespread falls in like-for-like sales.
Darty, the French electricals business, suffered a 0.7 per cent fall in same store sales in the six months to 2 August, albeit against a "depressed" market which shrank by 2.0 per cent overall.
BUT, the French furniture business, reported like-for-likes down 3.0 per cent, although, again, outperforming peers.
However, the UK Comet chain reported flat same-store takings despite 3.3 per cent market growth as the "negative publicity" surrounding the Competition Commission inquiry into warranty sales hit home.
Comet also lost trade in some areas to supermarkets, "further underlining the importance ongoing repositioning of products and ranges". The admission comes the day after Tesco announced 6 per cent growth in like-for-likes, largely attributed to increasing sales outside its historic food markets.
Retail profits at Comet's 249-strong chain, reduced by a net eight stores over the year, were £1.0 million for the half, compared with £1.5m a year before.
Group pre-tax profits were, at £52.8m, 7.9 per cent down on the same period in 2002.
However, Jean-Noel Labroue, chief executive, said Kesa was "beginning to benefit" from group-wide cost-cutting programmes.
"With a clear agenda and a highly motivated team, we are well positioned to improve our performance in the second half and to benefit from the upturn in our markets when it comes," Mr Labroue said.
Kesa shares stood 6p higher at 217.75p in morning trade.
