15th Sep 2016 07:57
LONDON (Alliance News) - Crawshaw Group PLC on Thursday said it suffered a reduction in like-for-like sales in the first half of its financial year due to suppressed footfall, which the fresh meat and food-to-go retailer blamed on the UK's vote to leave the European Union, bad weather and the Euro 2016 football tournament.
Shares in Crawshaw were trading down 40% at 44.35 pence on Thursday morning following the announcement. Other UK retailers providing trading updates Thursday, such as Wm Morrison Supermarkets PLC and John Lewis Partnership PLC, reported no effect of the Brexit vote on their sales since June.
Crawshaw noted that conditions in the weeks since the period-end have remained difficult, but that it is "acting quickly to restore sales momentum", which it feels can be achieved in time for the "very important" winter and festive season.
Crawshaw said it will introduce more local choice and lower price point packs in response to consumers who are more "price focused" since the Brexit vote and as supermarkets have recently launched some "aggressive" meat promotions.
Crawshaw added that it is reviewing its store roll-out strategy with a view to adding more out-of-town factory outlet stores in its store opening pipeline, as it said these stores "significantly" outperform the high street format.
"We are confident our actions can restore sales momentum, and we will be prepared to invest in margin to drive sales and sharpen our value proposition. We are disappointed with current trading and clearly the outlook for the full year will depend upon the result of our actions, upon trading during the important peak winter and festive season, and upon the timing of our store openings," Crawshaw said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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