Instore sees sales growth

YORKSHIRE-BASED discount chain Instore saw positive sales growth over the last six months but has admitted that its sales growth slowed during the crucial Christmas trading period.

The Huddersfield-based group which operates the Instore and Poundstretcher cut-price retail chains, has delivered a welcome message after retailers such as Marks & Spencer and Currys owner DSG said sales fell over Christmas.

However it said that it is not expecting much growth in sales in the first two months of this year.

Chief executive Peter Burdon said that total sales for the 18 weeks to December 29 were up 2.4% and up 2.9% on a like-for-like basis. For the final five weeks of that period, total sales were up 0.4% and 1.0% on a like-for-like basis.

The group said that the figures did not include the impact of the 33 Ponden Mill stores it bought just before Christmas.

Instore added in the trading update: “Residual seasonal stock is lower than last year so we anticipate that clearance markdowns will be lower during January and February. However, this will dampen sales growth during that period.”

The Ponden Mill deal via Instore's subsidiary Poundstretcher, saw it acquire 33 of the larger Ponden Mill stores mainly based on out-of-town retail parks with turnover of £21.8m.

The deal, for £3.8m, included all stock in the stores and at Ponden Mills parent company Marston Mills' Keighley distribution centre as well as a licence to use the Coloroll brand.