Floorcoverings retail chain Carpetright has announced that it plans to invest £10m in a major store overhaul, refurbishing 100 stores with its new branding.
According to the retailers latest full year results for the 52 weeks ended 30 April 2016, Carpetright said that following a ‘successful’ trail period of the new store format – which generated a like-for-like sales growth of 9.1%, it would begin its ‘phased’ revamp process to ‘update’ and ‘broaden’ the appeal of the brand.
Carpetright also reported a growth in UK like-for-like sales by 2.8%, with underlying operating profit up by 17.5% to £16.8m. In Group terms, Carpetright posted an underlying profit before tax of £17.3m, up by 33.1%, despite total revenue slipping by 1.3% to £456.8m – which was largely due to the ‘rationalisation’ of its estate.
Within the UK, Carpetright closed 25 stores, reducing its portfolio to 435 outlets nationwide, and revealed that it plans to introduce new hard flooring sections into its stores over the next 12 months.
Wilf Walsh, chief executive officer, said: “I am pleased to able to report on another year of significant progress. The Group has again delivered solid growth in profit, accompanied by consistent like-for-like sales growth in both the UK and Rest of Europe, whilst establishing real momentum with its plans to update and revitalise its business.
“Customer reaction to the initiatives trialled in our four concept stores during the period was overwhelmingly positive and we are excited about the opportunity of extending these to the wider estate commencing on 1 July 2016.
“Trading conditions in the early weeks of the new financial year have been more challenging, against strong comparatives in the prior year and in a market which is increasingly competitive, particularly in the UK. The outlook has been further complicated by the outcome of last week’s referendum and we are cautious about the impact the associated uncertainty will have on consumer confidence.”