Christchurch-based retailer Smiths City Group Ltd said its sales in the three months to October 31 fell 11.5 percent on the previous year.The company had earlier said sales in the quarter ended July were 3.5 percent ahead of last year. It said today that
Christchurch-based retailer Smiths City Group Ltd said its sales in the three months to October 31 fell 11.5 percent on the previous year.
The company had earlier said sales in the quarter ended July were 3.5 percent ahead of last year. It said today that sales in the six months to October 31 were 4.2 percent down in the previous year.
The retailer said it has been affected by the magnitude 7.1 earthquake in Canterbury on September 4 and the severe storm in Southland in September.
While its stores remained operational during these events, in the September and October trading period Christchurch has continued to experience disruption to trading because many roads in the central city have been partly or completely closed.
The Colombo Street store, which is the largest in the group, was gradually returning to normal.
Smiths City has had a claim for business interruption accepted in principle with its insurer for loss of income in certain stores following the earthquake.
"Looking ahead, trading conditions in retail for furniture and appliances are expected to remain difficult. At this stage it is too early to determine the impact of reduced sales on the profit for the half year to October 31. However, the company is viewing the critical Christmas period positively," it said.
