The Brantano Group mildly increased its turnover in Belgium and Luxembourg in the 3rd quarter ended Sept. 30, while sales in the UK fell. While attributing the sales decline in the vital UK market to lower consumer confidence and unusually warm weather that caused a bad start of the winter selling season, Brantano says it is trying to respond to the difficult trading conditions with a marketing campaign that will center on the idea that it offers the ‘best value for money.’
In Belgium and Luxembourg, turnover rose by 2.7 percent to €105.3 million for the first three quarters of the year, and grew by 1.4 percent on a same-store basis. In the 3rd quarter, sales grew by 4.3 percent in these regions, increasing by 2.7 percent on a same-store basis.
Total sales in the UK and the Middle East dropped by 2.7 percent in terms of euros in the first nine months, going down to €119.4 million, but while the rate of decline was of only 0.9 percent in pounds sterling, there was a drop of 3.3 percent on a same-store basis. In the 3rd quarter, same-stores sales decreased at a faster rate of 8.6 percent.
After the end of the first three quarters, Brantano had 140 stores in the UK, 125 in Belgium and Luxembourg and 9 franchises in the Middle East, for a total of 274 doors. Two stores were closed and five were opened in the UK during the latest quarter.
For the full 2005 year Brantano has adjusted its projected turnover downwards from €302-307 million to €300 million. It is looking at net income of €18 million instead of the previous target of €21-21.5 million.