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More high street retailers report Christmas sales rise

A new set of trading updates today have shown that retailers across the market had a bumper Christmas, with specialists in big brands thriving alongside bargain outlets. Outdoor clothing retailer Blacks Leisure claimed to be on the road to recovery after seeing a 12% jump in like-for-like sales in the six months to 7 January. The company, which shut many of its worst performing stores last year , said it was profiting from the cold, snowy weather that has gripped Britain since mid-December. Popular items in recent weeks included thermal underwear, leggings, and E Tip gloves for iPod users. The privately owned shop groups Poundland, Peacocks and House of Fraser also reported impressive festive sales figures today. They come after a series of equally upbeat sales figures last week from John Lewis, Next and Sainsbury's. At House of Fraser, like-for-like sales – which exclude gains from new stores – were up 7.1% on 2008 levels, with online sales almost doubling. The retailer's own labels, such as Linea and Howick – which generate bigger profit margins than branded goods – were ahead 33%. Chief executive John King said House of Fraser had enjoyed its best ever festive trading . "It was pleasing that we had our biggest ever Christmas week and Boxing Day, with some of our stores, such as Oxford Street, experiencing their strongest ever performance," said King. At the thriftier end of the high street Poundland also revealed it had enjoyed a buoyant Christmas . Like-for-like sales at the 250-strong chain – the biggest single-price discount retailer in Europe – were ahead 4.4% on 2008 levels. Total sales, including from new stores, were up 35% on a year ago. The retailer, which is backed by private equity owners, said that it intended to offer permanent employment to 360 temporary workers who were recruited as seasonal help. Peacocks, which operates 546 fashion stores across the UK, said its like-for-like sales were up 17% on last year's levels in December and early January. The chain's chief executive, Richard Kirk, said the group had had a "cracking Christmas as customers decided they were going to celebrate after a year of doom and gloom". However, the British Retail Consortium (BRC) warned that the Christmas surge in sales could be the last hurrah for many retailers for the foreseeable future. BRC data due to be published tomorrow is expected to show December sales at least 4% higher than 2008, but the trade body warned that 2010 is likely to be "very tough" as taxes rise and consumer confidence falls. But there was also positive news from the supermarket sector today, with the Co-operative announcing same-store growth of 4.8%. Britain's fifth-largest food retailer said a £200m price-cutting programme had paid off, encouraging more customers into its stores. Sales of champagne were up by 83%, with its £12 Veuve Monnier Brut Champagne proving particularly popular. "These results represent another strong trading performance from our food business in an increasingly competitive market and a difficult economic climate," said chief executive Peter Marks. The positive trend is expected to continue tomorrow, when Tesco will report a rise of about 3.5% for Christmas and new year. Other updates this week are expected from Primark, the Argos and Homebase owner HRG, Halfords, Mothercare, HMV, Debenhams and DSGi, the group behind Currys and PC World.

Source: The Guardian ↗

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