Cargo Club converts Kellogg's but not Sony
Nurdin & Peacock has complained to the Office of Fair Trading and the European Commission about the refusal. The commission is already studying Sony's dealership agreement - which requires, for example, that shops have carpets, good acoustics and smart sales staff - after lobbying by the Japanese company for greater access to European markets.
Nurdin & Peacock and the OFT have submitted comments to the commission and are waiting for its reaction. Cargo Club is selling Sony products but it has to buy them from middle-men, reducing the scope for discounting. It believes that Sony's refusal is due to pressure from other retailers.
It has, however, won around Kellogg's, Lever Brothers and Nestle, which would not supply their products when the first Cargo Club opened in Croydon, south London, in March.
Opening and promoting the Croydon store and a second in Wednesbury in the West Midlands cost the group pounds 2m in the six months to 1 July. The additional pounds 3m cost of converting its cash-and-carry branches to Trade and Business Warehouses helped to send profits tumbling from pounds 7.1m to pounds 2.1m before tax in the period.
A further pounds 5.5m of exceptional costs are likely in the second half, partly for its third Cargo Club, due to open in Bristol in November.
Nigel Hall, finance director, said the cash-and-carry conversions were stemming the decline in sales of recent years and he expected them to start growing in the second half. The 60,000 club members signed up so far had exceeded expectations.
Nurdin's earnings were 1.67p, down from 3.88p, but the interim dividend was raised 5 per cent to 2.16p.
- 1 Scottish referendum: So how about the English now being given a chance to split from England?
- 2 London council removes 'unacceptable' Stamford Hill posters telling women which side of the road to walk down
- 3 Kim Kardashian 'nude pictures' leaked on 4chan in new celebrity hacking attack weeks after Jennifer Lawrence scandal
- 4 Matthew Miller: American sentenced to hard labour in North Korea 'wanted to be Snowden II'
- 5 Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
London council removes 'unacceptable' Stamford Hill posters telling women which side of the road to walk down
Kim Kardashian 'nude pictures' leaked on 4chan in new celebrity hacking attack weeks after Jennifer Lawrence scandal
Isis in Syria: 60,000 Kurds flee terror in new exodus
Alan Henning kidnapping: British aid worker's wife appeals to Isis to release him
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Archbishop of Canterbury admits doubts about existence of God
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...