Comet parent Kesa Electricals has reported a three-fold increase in UK half-year losses as second quarter sales slumped 10%.
The retailer saw trading worsen significantly after a buoyant first quarter that was boosted by the World Cup, when UK like-for-like sales rose 4.3% thanks to a surge in flat screen television sales.
Kesa said its Comet chain in the UK saw losses widen to 6.4 million euros (£5.4 million) in the six months to October 31 up from 1.8 million euros (£1.5 million) a year ago, while sales dropped 2.6% to 864.1 million euros (£726.6 million).
It added the recent snowy weather had also hit recent trading, which the retailer hoped to make up before Christmas and on Boxing Day.
The retailer said Comet’s second quarter figures were a result of a slump in sales following the World Cup and because of tough comparables in the previous year when it gained market share.
It launched a three-year recovery plan for its 249-strong Comet chain earlier this year that involved refitting stores, sharper pricing and changing its product mix to include more kitchen and beauty products and accessories.
Online sales increased by 8% in the half-year and now account for 14.6% of revenues after it revamped its website and added more products to its online offer.
Kesa said sales of tablets devices such as iPads had been strong across Comet in the run up to the key Christmas period.
It is facing increased competition from the entrance of Best Buy into the UK market and from a resurgent Dixons Retail, which owns Currys and PC World.
Kesa Electricals, which trades in 10 countries including France where it is the market leader, showed a better performance across its French operations offset the UK woes, with half-year pre-tax profits up 283% to 27.2 million euros (£22.9 million).
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