MELBOURNE: Country Road expects a "difficult" Christmas in the wake of a dip in retail sales in the first quarter of 2010/11.
The listed men's, women's and childrenswear retailer reported Australian retail sales for the quarter ending September 25 were down 4.7 per cent. Concession sales were down 7.6 per cent.
In his address to shareholders, Country Road chairman Simon Susman wrote the shrinking Australian sale figures were offset by “the strong performance” of the company's 20 South African stores. As such, the company's total sales were up 5.1 per cent on the corresponding period last year.
“Trading conditions have been challenging through the first quarter and we expect these difficult trading conditions to carry on through Christmas. We hope for some improvement in retail trade from early 2011,” Susman wrote.
The Country Road chairman explained the company had opened three new Trenery stores and one Country Road store since the close of 2009/10, with plans to open a further seven stores across the two brands during the current financial year.
Susman also revealed Country Road had “restructured its commercial arrangements” with parent company Woolworths (South Africa) in relation to the Country Road and Trenery brands. The change was prompted by South African regulatory requirements.
Country Road operates the Country Road and Trenery brands across Australia, South Africa and New Zealand.