Hot weather stains gains at Sketchley

MAGNUS GRIMOND

Sketchley has become the latest retailer to blame the hot summer weather for a fall in sales. Turnover slid 4 per cent to pounds 71.4m in the 26 weeks to September, despite a more than doubling in the number of Sketchley's new combined dry- cleaning and SupaSnaps photo-processing outlets.

John Jackson, chief executive, unveiled an 8 per cent rise in pre-tax profits to pounds 4.32m for the period, saying he was pleased with the result. Since his arrival a year ago, Mr Jackson has overseen the merger of Sketchley's two retail brands, which operate from 104 combined sites, compared with 49 in March.

The summer weather had caused a "blip" in the 34 per cent rate of sales growth normally seen after 12 months of combined operations, Mr Jackson said. Although the increase was held to 18 per cent, Sketchley is going ahead with plans to open another 30 to 40 new sites next year.

Meanwhile, a more aggressive pricing policy against market leaders Boots since July has seen SupaSnaps reverse a fall in processing volumes. Volumes were up 23 per cent last week, against 2 to 3 per cent for the market.

A slip in retailing operating profits from pounds 2.93m to pounds 2.59m was more than made up for by uniforms and workwear, which rose from pounds 2.79m to pounds 3.23m. The division shrugged aside the ending of pounds 1.9m in business from British Coal and expects to continue growth of more than 60 per cent in linen processed.