In its interim results, the retail group, which owns the Poundstretcher and Instore fascias, detailed the cost of clearing old stock and reducing excess inventory as being responsible for the outcome. Increasing rental levels and hikes in utilities bills were also listed as contributing to the decline in profits.
Instore Trevor Coates chief executive and managing director said that, following his appointment in March, a root and branch review of the business had identified a future direction for the business and a return to profitability. He said that work to reduce stock levels and to rationalise product categories was under way, but that 'inevitably, these changes take time to implement'.
Trading at Instore for the first eight weeks of the second half is running 3.8 per cent ahead of last year like-for-like.