Stayaways push Hamleys into red

A DRAMATIC reduction in domestic customers has forced Britain's best-known toy store, Hamleys, back into the red in the first half, as shoppers stayed away from its Regent Street shop in the aftermath of the September terrorist attacks on the US.

Tourist numbers crashed after the attacks but the fall was equally marked in UK shoppers. The group said that analysis of credit card spending and country of card issue revealed that domestic trade in Regent Street had been ahead as much as 23% in the 10 weeks to 10 September.

That tumbled to 2% in the following eight weeks. Overseas spending, which had been down by 3%, showed a decline of 23%.

Overall, the store swung from a 13% gain before the attacks to a 5% fall, costing Hamleys £170,000 in lost profit. While operating profits for the half-year to 29 September improved from £400,000 to £600,000, exceptional items pushed the group into the red by £900,000 against a profit of £9000 last time, on sales up by £1m to £17.5m.

The company was also hit by higher costs, including rent. However, the half-time dividend is maintained at

2.2p.

'Anecdotal evidence tells us a lot of domestic shoppers, particularly with families, are shy of coming into the West End, ' said chairman Simon Burke.

While it is difficult to make any predictions for Christmas trading, Burke has no doubt about the top seller this year: 'It's Harry Potter, Harry Potter and Harry Potter - in that order.'