Weak sales double Habitat losses

Habitat UK, the British and Irish operations of the Habitat fascia, almost doubled losses for the 53 weeks to March 31 this year.

The home furnishings retailer blamed weak sales and costs of IT and restructuring for an increased net loss of£8.4 million on sales of£121.7 million.

The previous year's sales were£122.6 million and the 2001 net loss was£4.6 million.

According to the retailer's report and accounts, just filed at Companies House, while the sales were 'disappointing', the figures showed the slide of the previous year had been arrested. In 2001, sales fell 11 per cent compared to 2000.

But the statement went on: 'Increasing competition and slowing consumer demand in the furniture market have also made the trading environment tougher than the previous year.' The difficult conditions drove the operating loss up from£2 million to£6.8 million.

In June last year, Habitat closed its Belfast store. At the beginning of the current financial year, the Dublin outlet was converted into a franchise and is now part of the international franchise network.

Despite the loss, directors' emoluments increased more than 10 times, rising to£862,000 from£85,000. Staff costs rose slightly from£21.4 million to£23.6 million.

Restructuring costs totalled£847,000, which included relocating the head office to East London.