Thorntons feels sales chill

Retailer Thorntons said sales in its stores were down by 10 per cent on a year ago as cash-strapped consumers continued to cut back on chocolate treats.

The group’s preparations for the important Christmas season have also been hit by the loss of a large corporate order at its internet division.

Overall, Thorntons said total sales were down by 7.6 per cent to £46.5m in the 14 weeks to October 1, in line with its earlier forecasts.

Chief executive Jonathan Hart said: “As expected, the retail environment continues to be challenging with weakness in high street footfall. Our consumers remain cost conscious and continue to select promoted products.”

It has responded to the squeeze by improving own store merchandising and layout, as well as rolling out new ranges of “little gifts”.

The chain wants to revitalise the brand by creating a “theatre of the senses” but has also admitted that up to 180 stores will close over the next three years as it grows sales through the internet and other retailers.

Own-store sales were down by 10.1 per cent to £23.4m in the quarter, with the figure on a like-for-like basis showing a decline of 7.8 per cent.

Thorntons Direct sales decreased by 8.1 per cent to £1.2m due to the loss of the large corporate order, while commercial sales of chocolate through other retailers such as supermarkets were down 4.9 per cent to £18.9m.

However, Thorntons said the drop reflected the later timing of retailers’ Christmas orders and that it still expected the commercial division to perform in line with expectations.

Shares were down by more than two per cent today.