Bhs trading 'unpredictable' as sales fall

Retail boss Sir Philip Green described trading as "competitive and unpredictable" today after sales at his Bhs chain fell 4 per cent in the past six weeks.

The update came as Sir Philip reported a 39.6 per cent fall in Bhs's operating profits to £30.2 million for the year to March 29.

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He denied himself a Bhs dividend payout for the fourth year in a row.

Sir Philip famously paid himself a £1.2 billion dividend from his Topshop-to-Burton Arcadia clothing empire in 2005.

The chain's sales for the full year were 1.4 per cent lower at £860.3 million, with like-for-like sales down 2.9 per cent.

Sir Philip said the group achieved a "solid performance in an exceptionally challenging market", adding that the results had enabled Bhs to invest £50 million in capital spending in the last financial year.

It has completed the refurbishment of a further 14 stores since the start of the new financial year, with results from those stores showing sales 9 per cent above the rest of the chain.

Bhs has now refurbished 33 sites, including its flagship Oxford Street site.

Sir Philip added: "On a domestic front, the market remains competitive and unpredictable. The last six weeks have seen sales down 4 per cent, reflecting not only the market but also the continued impact of the erratic weather patterns.

"However, I have been very pleased with the performance of some of our product categories."

Childrenswear ranges were up by 5 per cent while Bhs home products outperformed the market with sales growth of 6 per cent, Sir Philip said.

Internationally, Bhs has 15 franchise partners operating out of 93 stores in 16 countries.

Sir Philip played down the extent to which the crisis in the financial markets will hit businesses on the High Street.

He told BBC Radio 4's Today programme: "Yes, there is going to be some shake-outs, but the retail business is the second-largest employer in the country.

"I think we need to get a little bit positive. Yes, the marketplace is tough. Yes, it is very, very competitive. Yes, there are concerns. But underlying business is not going to disappear. It's not a disaster.

"I don't believe any of the banks are going to go out of business - any of the big banks. I think we need to calm the consumers down and give them a bit of confidence."