Sales slumps and IT glitches add to retail gloom

Published on Thursday 6 October 2011 01:55

Mothercare sent a further shockwave through the retail sector yesterday by revealing its UK sales were “well below” expectations. The retailer, which saw its shares tumble, said UK like-for-like sales fell 9.6 per cent in the 12 weeks to 1 October and warned that the outlook for the all-important winter trading period had “materially worsened”. Its overseas operations have proved more successful.

Chocolate retailer Thorntons yesterday revealed sales in its stores were down by 10 per cent on a year ago as cash-strapped consumers continued to cut back on sugary treats. Preparations for Christmas have also been hit by the loss of a large corporate order at its internet division. Total sales were down 7.6 per cent to £46.5 million in the 14 weeks to 1 October, in line with its earlier forecasts.

The owner of the Superdry fashion label shocked the City as it warned that stock supply problems would wipe millions of pounds off this year’s profits. SuperGroup, which has 70 outlets in the UK, said IT problems with an upgrade to its warehouse in Gloucestershire had caused a “significant” reduction in the amount and range of sizes reaching its UK stores.