Christmas spices up sales on high street

Published on Tuesday 14 January 2003 00:00

SEX store chain Ann Summers emerged as the surprise leader as several high street retailers today updated the City on how they fared over the Christmas period.

The group, led by chief executive Jacqueline Gold, said like-for-like sales in December were 22 per cent higher than a year ago.

Total sales across the chain’s retail division rose 65 per cent, with the Ann Summers website improving business by 70 per cent.

The privately-owned retailer also saw comparable sales at Knickerbox, which it bought in February 2000, rise a better than expected 12 per cent.

Ms Gold said: " Ann Summers continues to show that people are still spending on the high street when it comes to improving their sex lives."

The group generates annual sales of around 85 million from a sales force of 7500 party planners, 75 UK stores and shops in Ireland and Spain.

There are now plans to add another 25 UK outlets in 2003 and Ms Gold said the group’s move to high-profile sites had been a key factor in the success.

Meanwhile GUS, the owner of catalogue store Argos and credit checking firm Experian, said it made good progress over the Christmas period, with like-for-like sales at Argos rising seven per cent in the 14 weeks to January 4.

Total worldwide sales at Experian gained 12 per cent in the three months to the end of December, and GUS chief executive John Peace said he was confident of a strong performance during the rest of the year, despite an eight per cent fall in sales at the group’s home shopping division.

GUS completed the 900m acquisition of DIY chain Homebase last month, and expects the firm to post an operating profit of about 100m before tax and exceptional charges in the year to February.

Mr Peace said: "We look forward with confidence to the remainder of the second half and the coming year, while remaining mindful of the potential impact of economic and political uncertainty." Department store group Debenhams also expressed caution over the economy as it reported a 2.8 per cent rise in like-for-like sales for the 19 weeks to January 11.

Chief executive Belinda Earl said: "We achieved good sales growth in the key Christmas trading period, particularly in gifts, cosmetics, accessories, young fashion and Designers at Debenhams."

Despite heavy discounting on the high street in the run-up to Christmas, Debenhams started its sales as planned on Boxing Day and Ms Earl said initial signs were "encouraging".

But she warned: "Looking forward, we remain cautious about the economic outlook for the UK consumer."

Meanwhile, at the other end of the market Poundstretcher owner Brown & Jackson said like-for-like sales at the budget chain rose 2.9 per cent in the seven weeks to January 11.

Chairman Christo Wiese said the figures marked an improvement on recent trading, adding like-for-like sales growth for the six months to December 28 amounted to just 0.8 per cent.

Brown & Jackson once owned the loss-making More Stores, What Everyone Wants (WEW), and Famous Brunswick Warehouse (FBW) chains but sold the businesses for just 1 last August to its major shareholder, Tradegro of South Africa, which also took on 47m of the group’s debts.

Glasgow-based WEW collapsed into administration along with FBW last month, putting 3240 jobs at risk, after Tradegro failed to turn the businesses around.

Carel Stassen, non-executive chairman of WEW and FBW and a director of Tradegro, said the two firms were beyond his ability to rescue, but administrator Ernst & Young hopes to sell them as a going concern.