Household spending below expectations
Floors-2-Go has warned that like-for-like sales are likely to plunge 20 per cent in the second quarter. The retailer said that the drop was a sign of a general downturn in discretionary household spending. As a result the retailer's operating profits will be materially lower than the same period last year.
Floors-2-Go chief executive Simon Farnsworth said: 'So Far, 2005 has been difficult for retailers overall and coupled with a May Bank Holiday trading period, has meant that our sales have been impacted more greatly than anticipated.'
The retailer has introduced a number of initiatives to improve margins and reduce costs. New product ranges will be introduced in the third quarter of the year, the retailer's peak trading period. It is also opening six new stores in Northern Ireland in August. Floors-2-Go said it was on track to open 25 new stores this year.
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