Kesa hit as Comet sales fall yet again

KESA yesterday reaffirmed that it was pushing ahead with its Comet revamp plan yesterday as sales again tumbled.

The electrical goods retailer said it was keeping its options open, including a possible sale of the struggling chain.

“The Comet turnaround plan is underway while continuing to examine other strategic alternatives,” the firm said. In June Kesa said it was looking at a range of options for Comet, including a disposal or formation of a joint venture, while pressing ahead with a turnaround plan that included selling weaker shops and focussing on profitable ranges like small appliances.

Kesa yesterday also posted a further deterioration in trading at Comet for the three months to 31 July.

Sales at Comet stores open over a year slumped 22.1 per cent, although gross margin increased 80 basis points.

The sales decline was in line with analyst forecasts of a fall of 18-25 per cent and partly reflected a tough World Cup football comparative with the same period last year. Like-for-like sales at the group’s Darty business in France fell 3.7 per cent, better than analyst forecasts.