Consumer fears impact Carpetright sales

The flooring firm said like-for-like sales were down 7.3 per cent in the UK and Ireland in the 12 weeks to October 23, compared with the 3.4 per cent fall seen at the end of July.

Chairman and chief executive Lord Harris of Peckham said he expected the current market conditions to continue into next year.

He added: "The further reduction in mortgage approvals along with fragile consumer confidence has produced a difficult market."

Shares fell seven per cent as City analysts revised their profit forecasts in the wake of today's gloomy update from the company.

Matthew McEachran, an analyst at Singer Capital Markets, said he expected the City's forecast for 2011 profits to fall 13 per cent to around 28m.

He added: "Typically October is a key month for the group as consumers look to replace carpets ahead of the Christmas period but this year low consumer confidence and low levels of mortgage approvals have impacted trade."