JD sales fall as consumer spending weakens

RETAILER JD Sports Fashion said today that while like-for-like sales and margins are down, trading is in line with expectations.

The Bury-based group, which has been one of the best performers on the high street throughout the recession said there were “very clear downward pressures” on consumer spending, and that the higher VAT rate was also having an impact.

In a trading update covering January 30 to June 4 JD said UK and Ireland sales are down 2.8% on last year, though the 2010 figure was boosted by pre-World Cup sales, making comparatives harder to interpret.

Sales in the sports stores are down 3% and fashion 1.6%, JD said.

The company added: “Elsewhere in the group satisfactory progress is being made and we continue to be well positioned to exploit our financial strength to take advantage of any strategic opportunities which may arise.”

JD has continued to pick up attractive brands, with a deal last week to buy the Peter Werth and Pink Soda fashion labels out of administration.