Retail pair give a boost to hopes on High Street

By ROSAMUND URWIN
Updated:


Department stores group House of Fraser and fashion chain Ted Baker proved today that there is still some life on the High Street.

House of Fraser, part-owned by the troubled Icelandic investor Baugur, reported a 4.5 per cent rise in total sales on the previous year in the five weeks to 3 January, although like-for-like sales fell 1.5 per cent in the same period, reflecting the tough trading conditions for retailers.

But the chain said it had seen the best ever performance at its Oxford Street branch in the week after Christmas, while its new store in the Westfield Shopping Centre has been attracting swathes of shoppers.


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Brightside:  To weather more challenging conditions in 2009 House of Fraser will scrap underperforming brands


'There is no doubt that the retail sector has experienced one of its toughest years to date. However, our performance over the Christmas period was positive and we are satisfied with the robustness of our business,' chairman Don McCarthy said today.

With the outlook for 2009 remaining 'challenging', House of Fraser announced it will scrap underperforming brands and grow its star performers in coming months.

The company also said it has a cash pile of over £85million and continues to repay its debts ahead of schedule.

Meanwhile, upmarket clothing brand Ted Baker reported a 7.2 per cent jump in sales from the start of November to Christmas.

But profit margins have been hit by increased spending on marketing, meaning the company now expects pre-tax profits to come in at the low end of forecasts of between £19million and £23million.

Founder and chief executive Ray Kelvin described its trading figures as a 'a creditable performance in a very challenging market'.

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