Electricals retailer to close up to 10 Comet stores and axe jobs
Up to 10 Comet stores to close
Comet owner Kesa Electricals is closing up to 10 stores this year after suffering another slide in UK sales.
The retailer, which has 248 outlets in the UK, will also shut one of its three warehouses and axe 12 of its 14 regional service centres, which are used as a base by its engineers who repair and service its products.
With Comet closing between five and 10 stores this year, Kesa said it expects to make 150 redundancies in the UK, including 40 recent job cuts at Comet’s head offices in Hull and Rickmansworth in Hertfordshire.
Same-store sales at Comet declined by 15.2 per cent in the 12 weeks to April 30 and are now down 7.7 per cent over the past year as the retailer struggled in difficult market conditions following January’s increase in VAT to 20 per cent. Online sales in the UK reduced by eight per cent.
Kesa warned earlier this year that Comet will make a loss this year after trade was disrupted by snow in the run-up to Christmas.
The company said it was likely that the warehouse to close would be in Corby, Northamptonshire, although this is subject to consultation.
Kesa’s business in France, where it trades as Darty, saw a five per cent rise in same-store sales in the final quarter of the financial year but this was offset by struggling markets such as the UK and Spain. Overall like-for-like sales were down 3.1 per cent in the period, which was slightly better than the City’s expectations of a fall of five per cent.
Shares rose one per cent as traders reacted to the smaller than expected sales slump and the restructuring plans.
"How do we balance security with civil liberties and privacy in today's high-tech but violent world? Can our private lives remain truly private?"
- Global Calculator: high life and climate change can co-exist
- BT plans to launch six times faster broadband by 2020
- BMW cars found at risk of being unlocked by hackers
- New search engine more efficient than Google
- I’d like that job – Sarah Doughty, Geographical information systems consultant, Atkins
- Partners of big data research institute named after Turing announced
- What to Specialise in Electronics Engineering?? [03:02 am 03/04/14]
- Britain to have just one remaining coal pit by the end of 2015 [01:11 am 03/04/14]
- LV Generator Star point earthing - UK [08:35 pm 02/04/14]
- East West Rail - the Oxford to Bedford route [07:33 pm 02/04/14]
- Small nuclear power [06:06 pm 02/04/14]
The essential source of engineering products and suppliers.