Peacocks has revealed credit-crunch defying sales as it benefits from consumers trading down.

In the past five weeks, which included the global banking collapse, like-for-likes increased 7.3 per cent, with like-for-like gross profit up 11.4 per cent.

Peacocks chief executive Richard Kirk said: “We have seen our core customers continue to shop despite the economic conditions, but have also seen a lot of trading down by customers from higher priced mid-market retailers.”

The value fashion group revealed total sales climbed 9.1 per cent over the past six months. Like-for-likes rose 1 per cent and gross profit increased 5.4 per cent on a like-for-like basis.

Kirk said volumes have been “great” across its lines. “Our up-to-date fashion looks at affordable prices seem to be really resonating with our customers,” he said.

“It is a tough environment as we all know but our numbers demonstrate that Peacocks, along with the other big value players, is in exactly the right place.”

Kirk denied market speculation that the retailer, which was taken private in 2005 in a£404 million deal backed by Goldman Sachs and hedge funds Och-Ziff and Perry Capital, is refinancing its debt.

The retailer appointed PricewaterhouseCoopers over the summer to work with its banks on plans to double its store numbers to 1,000.

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