Habitat back in profit, but Millar is off

Furniture and homewares specialist Habitat is back in fashion, following a return to profitability at the beleaguered UK division. However, UK retail chief Richard Millar is leaving.

The improved performance will bolster confidence at Habitat in an increasingly competitive market. Marks & Spencer will enter the fray with its first Lifestore next year, created by former Habitat man Vittorio Radice.

Millar - also head of marketing - said: 'I have enjoyed my time at Habitat and the decision was not easy. However, I have accomplished my goals and leave the UK business in a solid financial position.'

A Habitat spokeswoman said: 'Millar leaves having successfully re-established the profitability of the UK business and after seven years leading the company towards a common European marketing and promotional strategy.'

She would not confirm profit details, but a source close to the business claimed Habitat UK had generated a profit of£5.6 million to£6.3 million in the financial year just ended. In the year to March 2002, it made a net loss of£8.4 million.

Millar will remain in his post until the end of December to ensure that a smooth transition of office takes place.

The British homewares market - worth an estimated£20 billion - is becoming increasingly congested.

Habitat, founded by Sir Terrance Conran, is controlled by Ikea's Kamprad family vehicle Ikano, has 39 British shops.