Flooring independents are closing as Lord Harris says ‘We’ve grown market share’

30th June 2009 | flooring | A double digit sales fall hasn’t prevented Carpetright boss Lord Harris from predicting further independent failures and a growth in his own company’s market share.

The retailer, which has 567 stores in the UK, saw operating profits dive 73% to £15.6m in the UK and Ireland, after suffering a 12.9% drop in sales to £394.1m in the 52 weeks to 2nd May (2008: £452.7m).

Lord Harris said, ‘Manufacturers and retailers have seen the decline accelerate over the past year and we believe many independents have ceased trading.’

He added that the overall flooring market was down 20%; meaning Carpetright grew its own share of the market. He also said the firm had broadened its supplier base to achieve lower prices and protect its exposure to potential supplier failure.

The company has ‘re-engineered products’ to lower selling price levels and has introduced more Saxony carpets – while the weak economic backdrop has seen a slowdown in the group’s store opening programme and a shift in focus to areas such as the insurance market.

Lord Harris reiterated the company’s commitment to the generic Fun on the Floor marketing campaign, and said that Carpetright advertising was also the focus of reappraisal, with the company trialling new marketing forms such as television programme sponsorship.