New shop format underperformed in first year
Value retailer Instore has reported a£3.3 million loss for the year to February 25, compared to profits of£7.5 million last year.

Sales across the group were down 2.7 per cent and 0.7 per cent for like-for-likes. Before exceptional items, pre-tax profit was£3.3 million, down 51 per cent from last year.

The roll out of the Instore format has performed below expectations. The retailer said: 'The anticipated performance differentials between the Instore and Poundstretcher estates are yet to materialise.'

Instore also said its new purpose-built distribution centre has not been operating as efficiently as expecred and, as a result, costs have been above forecast.

Chairman Christo Wiese said: 'We have recognised that we have work to do to refine and improve our trading formats to produce the proper return on our already significant investment in modernising and revamping the business.'

Chief executive officer Trevor Coates, who was appointed in February, will lead a full review of all areas of the business.

In the eight weeks to April 22, like-for-like sales were up 7.1 per cent. However, the figure compares to a period of supply difficulties the previous year.

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