Carpetright launches strategic review to target John Lewis customers

The carpet and floor coverings specialist has traditionally positioned itself at the value end of the market but faces a challenge around how to communicate its premium range.

Carpetright chief executive Wilf Walsh said: “Where we have got a challenge is can we reach into the customer base that goes to John Lewis and the independent specialists that maybe think Carpetright is not for them?

“We do carry premium price ranges and expensive top-quality products and a wider width and deeper range than most retailers. The question is can we reach into that higher value transaction market without losing our reputation for being the best value?”

At present Carpetright is running a 25% promotion that draws attention to the expertise of the staff who work in its stores.

Walsh believes the retailer’s constant discounting at 50% to 60% obscures the rest of Carpetright’s proposition which includes “some really good products and very knowledgeable people”.

Carpetright has committed to continue discounting for the foreseeable future, a strategy that is driving a like-for-like sales increase in the UK.

Like-for-like sales in the UK increased by 7% and total sales rose by 5.7% for the 11 weeks to October 11 as a result of promotional activity.

The company’s performance within the beds sector has made strong progress, with double-digit sales growth in the category. It now sells beds in 270 of its 463 stores.

Carpetright is in the process of modernising stores and has now revamped 290 of them.

Carpetright’s like-for-likes in the Netherlands, Belgium and Republic of Ireland slipped by 0.5% for the period.

The retailer forecasts its Netherlands and Belgium businesses will be profitable for the first half of the financial year after posting a loss last year.

Profits will come from cutting costs and margins because sales in the Netherlands and Belgium are not expected to increase in the immediate future.