Comet fails to hit sales targets

Retail titan Kingfisher has reported favourable results, despite Comet once again bucking the group trend with its ailing figures.

The group's turnover climbed 16.4 per cent to nearly #7.5 billion, while profit rose to #582.5 million, a 15.3 per cent increase for the year ended 30 January. The results also showed its European expansion to be on track, with 40 per cent of sales coming from outside the UK.

Comet's #862.4 million turnover revealed a 0.6 per cent slump in like-for-like sales. The retail chain's profit remained flat at #33.4 million.

Comet was the least profitable of Kingfisher's established electrical store brands, despite a 261 store count. However, it nudged its market share up from 11.7 per cent to 12.3 per cent.

The group will create 3,200 jobs in the UK through its continuing expansion this year. Kingfisher plans to open 103 stores, of which 31 will be electrical stores. Only eight will be for the Comet chain.

Although Kingfisher conceded Comet had a 'difficult year', it has started its fight back with the appointment of Mike Rooney as general manager of operational services. It has also established a 'merchandise laboratory' in Hertfordshire. The testing store will be used to pilot ideas before launching them.

In an attempt to stem falling sales, Comet will introduce its e-commerce site this year. Sir Geoffrey Mulcahy, group chief executive at Kingfisher, stated: 'We have some challenges to address. Customers continue to be more demanding and careful with their money and new technology will affect shopping habits.'