Hamleys loses £900,000

A dramatic drop in shoppers at toy store Hamleys has led to a loss of nearly £1 million in six months of trading.

Chairman Simon Burke said: "It's quite clear cut that this is the impact from 11 September." Mr Burke said the company had studied credit card purchases after the terror attacks on the United States. "Spending by overseas tourists dropped by 23 per cent," he said.

The store swung from a 13 per cent gain prior to 11 September to a five per cent fall, costing £170,000 in lost profits. Higher costs, including rent for the Regent Street flagship store, and other costs connected with converting its chain of Toystack stores into Bear Factories combined with the loss of West End shoppers. These pushed the company into the red by £900,000 for the half-year to 29 September compared with a profit of £9,000 for a similar period last year.

"We have been surprised by the extent to which British customers have stayed away from Regent Street," said Mr Burke today. "It's not just Londoners who are staying away but families who would normally come up from the country.

"Most people are protective of their families first and foremost and this has had a direct effect on business. Half-term week, a fortnight ago, showed the biggest single drop since the week of 11 September." He added: "The sector in which we've noticed the biggest fall is the casual family visit where between £5 and £10 would normally be spent. The serious shoppers are still coming and are taking advantage of a store which is less clogged with tourists."

Mr Burke admitted he does not expect an easy Christmas but said: "We won't drop prices."

Instead, Hamleys hopes to boost catalogue sales, and increase sales via its website and through the QVC shopping channel.

It's Christmas with This is London!