Cut-price chains' roaring trade

TWO OF Britain's biggest discount store chains have reported bumper sales over the festive season. George Foster, chief executive of TJ Hughes, said like-for-like sales rose 12.1% and total sales by 39% in the six weeks to 5 January, powered by a management reshuffle.

Foster is leading a management buyout for the Liverpool-based firm, which is looking at a south London site for its 37th branded merchandise discount store to complement those in Eastbourne, Crawley, Maidstone and Romford. The retailer opened six new stores last year.

Cardiff-based Peacock said gross margins were up 3.6%, like-for-like sales 4.1% better and total sales 12.6% to the good in its 344 stores, 32 of which opened last year. The group says it will open between 35 and 40 outlets this year, creating 1,000 jobs.

Peacock is targeting the outskirts of London, with sites confirmed at Eltham and Thamesmead, chief executive Richard Kirk said today. In addition, the firm is wholesaling clothes to the Woolworths-operated Big W chain.

TJ Hughes shares nudged ahead 1/2p to 116 1/2p, while Peacock's stock fell 5 1/2p to 129 1/2p.