Turnover of €71.3 million was earned in the United Kingdom (including the Middle East) during the first half of 2006 compared with €76.2 million in the first half of 2005. Turnover fell as a result by 6.4 percent. Expressed in sterling, turnover also fell by 6.4 percent. In the United Kingdom, Brantano experienced a negative like-for-like growth of 10.4 percent.
Turnover expectations in the first six months were not fulfilled in the United Kingdom where Brantano is still facing difficult trading conditions and the poor spring weather also had a negative impact on the turnover trend.
The Group also wants to build on Brantano's positioning as a national retailer in the British market in 2006 and as a result; its new commercial policy means that a higher quality turnover and therefore a larger gross margin are being pursued. The summer sales are therefore also being started at the end of June only, compared with the start of June last year. This had a negative influence on turnover, but was positive in terms of percentage gross margin.
Brantano owns 22 stores in Belgium, in addition to the distribution centre whereas in the UK all stores are rented. In Belgium, the Group reached an agreement as to the sale of the store in Lede. This outlet will continue to operate as a Brantano store.
Brantano is playing a proactive part in relation to the evolution of the real estate market in the United Kingdom. In this country rental agreements are subject to rent reviews every 5 years. The 5-year rental review can occasionally lead to a sales opportunity and the realization of added value on the transfer of a hired unit to the owner. The rental rights of the Brantano store in Leamington were transferred in this way. The rental contracts are also monitored very closely.
marketing@alchempro.com
