House of Fraser posts flat sales in challenging market conditions

Department store group House of Fraser has reported flat interim sales for the six months to 30 July amid what it has called "very challenging" trading conditions.

Sales at the business, which operates around 60 stores, were £573.5m while its gross profits edged up by £2.5m to £207.2m. It added that the eight weeks to 24 September had seen a 2% drop in sales year on year, which was in part due to volatile trading as well as disruption caused by store refurbishments.

A further five store refurbishments will be completed this autumn taking the total number of refurbishments to 12 in the past two years. House of Fraser also plans to open its first store in China, in Nanjing, by the end of year while a new shopping centre development in Rushden Lakes in Northamptonshire is due to open in summer 2017.

As well as the refurbishments, House of Fraser is also adding to its brand offer with Charlotte Tilbury, AllSaints, Monsoon and Mulberry all coming on board and it plans to introduce six Hamleys concessions during the second half.

CEO Nigel Oddy said: "We have, like many of our peers, experienced an extremely volatile trading environment since the final quarter of fiscal year 2016, and we expect this uncertain economic situation to remain for some time."

Nonetheless the business remains "cautiously optimistic" of delivering growth this year as sales should pick up in the all-important festive trading period