London Retailers Issue Profit Warnings

14/11/2007

London retailers are worried this Christmas party season. They are facing slower consumer spending during the lead-up to the Christmas party and holiday season. Financial experts blame the slow spending trend on a wet summer and five interest rate hikes this year.

French Connection is one retailer struggling to meet numbers before the Christmas party season this year. The clothing retailer issued a profit warning this week, reporting that its sales fell short of what company bosses were hoping for. August and October were both slow months for the company. French Connection officers are hopeful shoppers will pick up the pace as the Christmas party and holiday season approaches.

Operations director Neil Williams said “Looking forward to the second half, I think that autumn is going to continue to be a challenging season in the UK and trade has started off that way.”

French Connection gave this statement: “While we expect to report a profit for the year, our ability to achieve the same level of profit as last year depends on an improvement in the general retail environment in the UK over the next three months.”