Carpetright endured a sales slump in the first half of the year as the retailer warned that the declining value of the pound will lead to an increase in costs.
In its half yearly report published today, the retailer said stiff competition led to a 2.9 per cent downturn in like-for-like sales during the period.
In addition, it said that as a result of “increased sourcing costs resulting from the devaluation of sterling, competitive market conditions and a mix impact”, annual gross profits in the UK are now expected to come in between 1.5 per cent to two per cent lower than previously forecast.
However, Carpetright‘s profit expectations for the full year remain unchanged.
Chief executive Wilf Walsh said trading conditions in the first half reflected “variable consumer demand” and increased competition.
“Against this background, our plan to revitalise the UK business remains on track and we are now almost halfway towards our target of 100 store refurbishments in the current financial year, with investment in the first half weighted to the latter part of the period,” he said.