Chief executive Angus Monro said the trowels-to-towels discount retailer expects to achieve like-for-like sales of between 3 per cent and 4 per cent in the second quarter, compared with the year before.
Monro added that the 350,000 sq ft (32,515 sq m) warehouse at Huddersfield in West Yorkshire has resulted in better stock management and less cluttered stores, as well as greater scope for direct sourcing from factories in India and China.
About 53 per cent of product is bought directly, but Monro wants to increase this to more than 60 per cent in the coming year as part of a strategy to increase margins by 1 per cent each year.
He also intends to cut the number of basic products in each Instore range, while upping the number of added value or 'better' products, which can help boost profits.
The retailer has also altered its overall product mix follow- ing a root-and-branch performance review. Clothing has been reduced from 23 per cent of the business to 15 per cent after menswear was discontinued. The outdoors and gardening range has increased and less space will be devoted to toiletries and confectionery. The retailer is also planning to extend its lighting and heating offer in time for winter.
Instore has 320 outlets, including those still under the Poundstretcher fascia. It intends to open 20 stores in the next 12 months.
No comments yet