Peacock profits back on track

DISCOUNT fashion chain Peacocks is stepping up store openings and plans to spend £2m on refurbishing 50 more. It will add 40 new outlets to its chain of 344 after disappointing the City last May with only a 2% profit increase following missed sales and new-store targets.

The slowdown was also blamed on price cutting by rivals and a poorly received range that had left the Cardiff-based group with lots of stock to be sold at cost price.

Now chief executive Richard Kirk has a more conservative buying policy and has upgraded women's fashions. 'We have 25% less stock and have transformed our internal systems,' he said.

This has already led to savings of £1m a year and the group is thought to be on target for £16m profit in May, compared with £14.8m last year.