Body Shop will switch stock replenishment to automatic systems this year, as management pursues a turnaround at the underperforming UK chain.
Sales from UK stores dived 16 per cent - 12 per cent on a like-for-like basis - in the 10 weeks to January 3. Overall, group Christmas sales were down 1 per cent and 5 per cent like for like. Weak sales in the UK were counterbalanced by strong performances in the US and Asia Pacific.
'We are not downbeat (about negative like-for-likes),' said finance director Peter Youngs. 'We have some very good performances in our portfolio. There are some specific issues we need to address in Britain and view it as part of a transition process.'
Youngs said FOAD (Forecasting, Ordering, Allocation and Distribution), the computerised stock replenishment system tested in eight stores before Christmas, was 'where we should be as a retailer.'
The system will be installed across the 300-strong chain this year, improving in-store availability and helping advise staff on product markdowns.
Although UK sales were down, the retailer undertook less discounting than in previous years and delivered margins 'significantly ahead' of last year.
Body Shop chief executive Peter Saunders said the retailer has had a problem converting footfall into sales.
A more American style of customer service has been introduced, which it is hoped will stimulate sales.
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