Carpetright losses increase because of the Netherlands

Carpetright losses increase because of the Netherlands

Carpetright has increased its losses as the British flooring specialist has closed its fiscal year with a pre-tax loss of 7.2 million pounds (some 9 million euro), blaming mainly the Netherlands.

Huge sales drop in continental Europe 

The turnover in its past fiscal year dropped 2.2 % to 447.7 million pounds (or 560 million euro), but the British chain managed to keep the sales drop relatively low in its home market, namely 1.5 %. The rest of Europe (which is Ireland, Netherlands and Belgium for this particular company) experienced a far greater turnover drop, namely 5.4 %.

 

The like-for-like comparison is even more striking as the British numbers dropped 0.2 % while the rest of Europe dropped 8.6 %.

 

Carpetright mainly blames the weak Dutch market, where consumers spend a whole lot less on the decoration of their house, which impacts both the company's turnover and its profit position.

 

Operating income halved

The entire situation led to the operating income dropping from 9.7 million pounds to 4.6 million pounds (or 5.8 million euro). If one-time costs are added into the calculation, then the 5.1 million pound loss in 2013 grew to 7.2 million pounds now (9 million euro).

 

"We anticipate trading conditions will remain challenging", soon-to-be-former chairman Lord Harris said. On 21 July, Wilf Walsh will become his successor after plying his trade at music chain HMV and bookmaker Coral.

Questions or comments? Please feel free to contact the editors


European retail rental prices continue to soar

20/07/2017

A recent study from research firm CBRE shows that rental prices for Europe’s most expensive retail locations are still on the rise. It is the only region that still experiences growth for retail real estate.

Mitiska REIM acquires 11 Romanian retail parks

23/06/2017

Mitiska REIM has acquired Romanian Alpha Property Development’s portfolio of eleven profitable retail parks and three development projects. The Belgian real estate firm is now the market leader in Romania.

Raad van State suspends Uplace's environmental permit

30/03/2017

Uplace will have to put its construction plans for Machelen on hold once again because the Raad van State just suspended the environmental permit the Flemish government had approved.

Redevco buys new store location in Paris

24/01/2017

Real estate firm Redevco bought a store location, including stores like Tiffany & Co and Glasshütte, in the Rue de la Paix in Paris from Savills Investment Management. Neither party wished to disclose the fee for the acquisition.

Rental price for top shopping streets drops

16/11/2016

Rental prices in the world's two most expensive shopping streets have dropped due to the growth of online shopping, leaving retail chains and real estate agents in a real pickle on how to deal with this new reality.

Major Benelux cities are important step in international brands' expansion strategy

14/11/2016

International brands use major Benelux cities as an important stepping stone in their European expansion strategy, a new study says. Many major brands schedule openings in the Benelux immediately after hubs like Paris and London, mainly thanks to its central location.

Back to top