LBE.L Regulatory News (LBE)

10 Jan 2005 07:00

Retail Stores PLC10 January 2005 FOR IMMEDIATE RELEASE10th January 2005 RETAIL STORES PLC: LIBERTY BUCKS RETAIL TRENDS AS CHRISTMAS SALES SURGE 14% Retail Stores plc ("Retail Stores") owner of the Liberty store on London'sRegent Street, today announces that retail sales for December up until Christmasshowed a 14.2% advance over the comparable period a year ago. While in the first full week of the post Christmas sale, volume was also up bymore than 5%. This surge in December sales reflects Liberty's increasing popularity as adestination shopping venue following the restructuring both of the retail offerand management team over the past year. Importantly volumes were not boosted byaggressive discounting or pre-Christmas sales. At the heart of the improved sales performance during December were four keyareas: Beauty and Cosmetics; Ladies Accessories; Jewellery and Menswear. Therewas also a strong performance from the re-vamped Home department. The December results follow a strong performance in the Autumn/Winter seasonwhere retail sales at the store for the 26 weeks to the 25th of December wereahead of the previous year by 10%. This result was achieved without the need forsubstantial markdowns and the gross margin rate over this period also improvedby more than 1% point. Stock levels in the key fashion areas following the firstweek of sale were in line with expectations Liberty's average transaction values increased by 13% over the previous year andconversion rates have been improving steadily since the beginning of September. Iain Renwick, Chief Executive, said: "December's performance has been mostencouraging in view of the generally difficult retailing environment.. Over thepast six months we have seen steadily increasing sales volumes as the hard workbehind the scenes to reposition Liberty as London's destination store has bornefruit. "We are also making tremendous progress in increasing the level of Libertyown-brand goods in the store and the success of Liberty branded giftware overthe Christmas period reflects that. Without a doubt we are turning Libertyaround," added Renwick. Liberty Chairman Richard Balfour-Lynn, who is also Chief Executive of MaryleboneWarwick Balfour Group PLC, which owns 68% of Retail Stores plc, Liberty'sultimate owner, today also announced that one of the principal goals this yearis to eliminate the company's £50m bank debt. He said this would be achievedthrough the sale of Lasenby House and the sale and leaseback of Regent House.DTZ has been appointed to advise on the property disposals. Richard Balfour-Lynn commented: "We hope that during the first half of 2005 thatthese sales will be completed, leaving Liberty debt-free. Together with the workthat has been undertaken, and continues to be undertaken, to reinvigorate theLiberty brand the emporium is becoming one of London's most exciting andrewarding places to shop." Finally, Retail Stores announces that it has appointed Seymour Pierce as itsNominated Advisor and Broker. Ends. Contact: Richard Balfour-Lynn, Chairman, Liberty. Tel: 020 7706 2121 Iain Renwick, Chief Executive, Liberty. Tel: 020 7734 1234 Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161 This information is provided by RNS The company news service from the London Stock Exchange