Bonmarche sets Peacock back

BRITAIN's third-largest clothing retailer, Peacock, has suffered a setback at the Bonmarche chain it acquired two years ago.

Like-for-like sales at the 314-store Bonmarche business dived 13.6% in the 13 weeks to 27 March.

Peacock signalled earlier this year that sales at the chain over the quarter would be hit because of tough comparisons with a year ago, when the group slashed the price of out-of-date stock.

It insisted the fall had been fully offset by a rise in the gross margin at Bonmarche and said volumes were up sharply in recent weeks. Chief executive Richard Kirk added that there were signs of good underlying progress in both Bonmarche and the nearly 400 Peacocks-branded stores, where like-for-like sales rose 5.5% over the 13 weeks.

Analysts expect Peacock to report pre-tax profits of £35m for the year to the end of March, up from £20.3m 12 months ago. Sales for the 52 weeks to 27 March across the group were up 10% and 3.5% on a like-for-like basis. Bonmarche suffered a 0.7% like-for-like slide over the year.