Liberty's facelift gives sales boost

REGENT Street's Liberty department store has made a flying start to 2005, as its new look pulls in more customers.

Following a 14% surge at Christmas, sales accelerated to 15% in January, held firm in February and were 'very strong indeed' in March, according to Iain Renwick, chief executive of Retail Stores, which operates Liberty. Sales for the six months to the end of 2004 were up 11% on the year.

Renwick put the strong performance down to an 'underlying change' in the business, as the overhaul to key departments sinks in. Executive chairman Richard Balfour-Lynn added that 'early indications' are growth will continue for the rest of the second half and is confident of a healthy uplift in sales at year-end.

Although increased sales have yet to be translated into greater profitability, first-half losses before interest and tax were pruned to £445,000 from £711,000 a year ago.

Renwick says the group is 'clearly trending to breakeven at an operating level in the next 18-24 months'. Liberty also plans to eliminate its £50m debt through property sales.