Consumers spend more on clothes than homeware

2010-01-14 11:43

CONSUMERS spent more on clothes towards the end of last year but

cut back on homeware, a trading update from Mr Price indicates.

The JSE-listed retailer today announced an 8.4% increase in sales

for its third quarter, helped largely by its clothing unit.

It achieved sales growth of 6.2% and 6.4% in October and November

respectively.

The growth achieved in December was 10.8%.

“Group sales for the quarter were in line with expectations which

took into account the recession and the high base in the same quarter in the

previous year when comparable sales were more than 15%,” the retailer said. Its

apparel division (Mr Price, Mr Price Sport and Miladys) represented 73.4% of

sales and achieved sales growth for the quarter of 10.4%.

The Home Division (Mr Price Home and Sheet Street), which

represented 26.6% of sales, continued to be affected by the reduced consumer

spend on durable and semi-durable products which includes homeware.

Sales growth of only 3.2% was recorded in the division, Mr Price

said.

The group said its debtors’ book remained “well controlled” from

both a credit granting and a collections perspective, resulting in bad debt

levels improving slightly on that reported for the half year ended September 30.


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