United sees customers tread warily

The Mexborough-based company said like-for-like sales fell 0.6 per cent in the 25 weeks to September 22.

United’s chief executive Paul Eyre said: “Given the ongoing economic uncertainty across the UK and with the austerity measures now resulting in job cuts throughout the public sector, consumers have continued to spend their money cautiously.”

Despite this he said the group continues to trade in line with market expectations for the full year.

While the group is in the process of reducing the number of corporate or non-franchised stores, their number actually increased from 14 to 18 during the 25-week period.

“As these additional stores were loss-making they will have a greater adverse impact on group profitability in the first half than if they had continued as franchised stores,” said Mr Eyre.

United said that sales of flooring were slightly ahead of the comparable period last year.

“Customers have recognised the value for money we offer and the opportunity to choose from our extensive ranges of flooring,” said Mr Eyre.

“We believe our trading performance continues to compare favourably with our nearest retail peers.”

The beds division struggled despite relatively weak comparatives, with consumers reluctant to spend on larger value items.

Around 80 per cent of United’s stores operate under a franchised structure.