TJ Hughes chairman cautiously optimistic after sales surge
BOSSES of TJ Hughes say they are cautiously optimistic about prospects for the year ahead after strong festive trading.
The discount department store chain, which is based in Liverpool, and has 16 stores in the North West, says its focus on value for money is paying off in these challenging times.
Sales for the five weeks to January 5 were up 8.9% on the same period last year.
Chairman Neil McCausland, a retail veteran and former boss of C&A, told TheBusinessDesk: “The retail sector is tough and the economy uncertain, but the TJ Hughes format is focused on value and bargains and consumers are responding to that.
“We are gaining market share and we have good-like-for-like sales and the business is doing well, although I say that with caution for the year ahead.”
Mr McCausland said the retail sector was “polarised” with some businesses faring better than others.The winners he said tended to be at the top and bottom end of the market place, with mid-tier chains suffering.
“People in the middle are more squeezed than those at the top and bottom end – it has been the case for a number of years and is becoming more so every year.
“This is particularly true when the economy gets tough and consumers increasingly look for bargains. TJ\’s has got the right format for this economic climate.”
Owned by private equity firm Silverfleet Capital – which backed a £56m buyout from JJB Sports in 2004 – TJ Hughes has 49 stores nationwide. Gross sales last year were £310m.
Mr McCausland said he had known business conditions to be as challenging as they are now, but conceded that he had been taken aback by the speed the economy has slowed-down.
“We are prepared for a quite a tough 2009, but we plan to continue to grow our market share. We feel we are well positioned, but are cautious about this year,” he added.
