Carpetright aims to grow share with Allders tie-up

Carpetright chairman and chief executive Lord Harris' economic forecast for next year is one of 'caution'.

However, despite predicting difficult trading in the sector, Harris is bullish that he can grow market share from 25 per cent to 30 per cent.

Carpetright, the UK's biggest floorcoverings specialist, reported an interim pre-tax profit surge of 45.7 per cent to£31.9 million. However, group sales fell 1.1 per cent to£216.6 million in a contracting market.

Harris was happy with UK business performance throughout November - the most important month in the carpet seller's calendar - recording like-for-like growth of 2.7 per cent in the six weeks to December 13.

Carpetright is driving its mature UK business with a link up with Allders and will soon have 'Carpets at Allders' branded concessions running at 29 department stores.

Lord Harris said the new channel offered access to high-spending customers with average transaction values of£750, as opposed to the chain's typical£95.

Carpetright has widened its carpet and laminate ranges, refreshing own-brand identities and point-of-sale material.

The carpet giant continues to pursue its UK expansion, and is looking for 50 more out-of-town outlets to add to the existing 351-store total.

It is also resiting stores to bulky goods parks that attract lower rent.

The retailer also turned in its first profit -£400,000 - at its one year-old Benelux operation, reversing last year's£1.5 million loss. Harris said there 'was a lot more to come' from the European business and, after a review of the existing 87-store estate, a 100-store target has been set.

The retailer intends to sub-let 10 to 15 over-spaced European stores to complementary retailers such as Topps Tiles.