United Carpets confident in time of caution

The Mexborough-based group said trading has been "challenging" in the 25 weeks to the end of September because of consumer wariness in the run-up to and since the General Election.

Like-for-like sales were down 5.5 per cent, which United said also reflected a strong comparative period a year ago.

But the group, which operates from 83 stores across the UK, insisted it could defend its position.

"Market demand over the last two years has been volatile, primarily reflecting the prevailing economic uncertainty," the group said in an update to shareholders at its annual meeting.

"United Carpets continues to be well positioned, however, to defend its market share through providing exceptional value for money."

It added: "The group's long-term future remains sound supported by positive cash balances, an expanding store portfolio and a well established brand."

The group operates mainly thorough a franchise model, which it said further protected it from the economic climate.

Of its 83 stores, 73 are franchised and 10 are corporate.

"With the majority of stores operating under the group's franchise model, the business benefits from the entrepreneurial drive and motivation of the individual store owners which, we believe, is a critical advantage over more traditional retail networks," said the group.

United added it had an "excellent" pipeline of potential franchisees, many of whom have already made a significant financial commitment to join.

United said it may benefit from customers looking to beat the January VAT increase to 20 per cent.

It said: "We will continue to offer outstanding value for money on wide ranges of flooring, far outstripping local independent competitors who cannot match the advertising spend or the depth of products available in a United Carpets store."