The Works chairman Tim Brookes said: “We will be curtailing branch expansion next year.”
The 304-store retailer planned to open 15 shops next year, but now will not open any.
Last Saturday, like-for-like sales fell 7 per cent and remained down on Sunday. The previous week, like-for-likes climbed 4 per cent. Brookes said: “Last year I was really confident and, two days before Christmas, we transformed the business. But consumers are really worried this year, footfall is down. It will be tough.” He added that, even with the extra day, The Works’ Christmas trade is still running tight.
Brookes said some retailers are playing a dangerous game by discounting early, because they are not maximising margins. He said The Works has got better products and is in a stronger position than previous years, but “the current retail market conspires against good businesses”.
Brookes added that the bedrock of consumer confidence is the housing market, but mortgage payments are starting to hit and there is a climate of fear concerning the residential property market and financial system. “It has all the signs of the early 1990s. Nobody has confidence in anything. I am horribly pessimistic for next year,” he said.
According to Brookes, the high street is suffering worse than shopping centres, with a marked difference in performance.
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