Profit warning from discount retailer
Profits at value variety store group Instore are likely to be well below last year's£6.8 million figure and 'substantially below current market expectations', the company warned today.

Since reporting relatively strong sales during Christmas and New Year, Instore has seen a significant shortfall in sales against its own expectations in the four weeks to February 11, it said.

Like-for-like sales for the period are broadly level, but significantly below expectations at Poundstretcher and the eponymous Instore shops. Margins for the period have been slightly behind expectations, although they are 1 per cent ahead of last year.

Operating costs, in particular at the group's new distribution centre, have continued to run ahead of forecast and Instore has embarked on an external review of its processes to bring down operating costs.

'The downturn in trading against our expectations in the past four weeks is disappointing,' said Instore chairman Christo Wiese. 'As a result, we expect the current challenging trading environment to continue and our forward planning reflects this.'

Topics