No relief for Kesa Electricals as sales continue to decline
Kesa Electricals, Europe’s third-biggest electrical goods retailer, yesterday reported sales declining faster in the first four months of 2009 than at the end of last year but said annual profit met expectations.
Kesa, which owns Comet, said it held a strong cash position but forecast 2009-10 would be another “challenging year.”
The group also said its troubled Spanish business Menaje Del Hogar would post higher than anticipated full year retail losses of €26m (£23.3m) and would be restructured, with the closure of stores, a warehouse and distribution centre, the streamlining of head office functions and staff cuts. These actions, which will necessitate a €10m exceptional charge, will generate annual cost savings of about £11m, said Kesa.
The firm said Comet was also taking a £9m exceptional charge following the consolidation of distribution and service centres and a cut in head office staff. It said annualised cost savings would be about £14m.
Kesa said group-wide sales at stores open at least a year fell 7.5 per cent in the 16 weeks to 30 April. That followed a 5.5 per cent fall in the 10 weeks to 8 January.