Woes not ho-ho-hos for Bonmarche this Christmas
By Sarah Wood | 14th December 2018
It won't be a merry Christmas at womenswear chain Bonmarche, which says current trading conditions are worse than during the recession, as it blamed Brexit uncertainty for its falling sales.
Shares in the value retailer, which has stores in Gloucester, Lechlade and Lydney, fell by 48 per cent as it issued its second profit alert in less than three months, forecasting that it could slump to a full-year loss, as reported by Sky.
Bonmarche said sales during Black Friday week, when it had hoped to see a rise in sales as shoppers took advantage of discounts, had been extremely poor. The retailer said its Black Friday performance suggested that consumer behaviour wasn't following last year's pattern or any other pattern it has experienced previously.
The company believes uncertainty around Brexit is a significant factor affecting demand and that things may not improve until the current period of uncertainty ends.
Bonmarche now expects to report full-year results that show somewhere between zero profit and a £4m loss.
The warning comes just days after retailers including Superdry and Dixons Carphone also pointed to uncertainty weighing on UK consumers.
Punchline said: "It's been a tough year on the high street and it doesn't look like the uncertainty is going to end any time soon for many of our big retailers. This Christmas looks to be less about the ho-ho-hos and more about the woes."
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