According to the Press Association, consumers’ fears have hit the flooring firm hard in a climate which has not been great for household spending on more expensive items.

In the last 12 weeks Carpetright reported sales were down 7.3%, compared to the 3.4% drop at the end of July. Lord Harris of Peckham, chairman and chief executive of Carpetright, expects the market to remain the way it is into next year. He puts the difficult market conditions down to further reductions in mortgage approvals and fragile consumer confidence.

The company’s shares fell by 7% as the profit forecast was adjusted after the sales figures were released. Matthew McEachran, a market analyst at Singer Capital Markets said, “Typically October is a key month for the group as consumers look to replace carpets ahead of the Christmas period but this year low consumer confidence and low levels of mortgage approvals have impacted trade.”

Carpetright, with 702 stores in the UK, Ireland, the Netherlands and in Belgium, still expects an improvement in their full-year margin because of the cost controls and carefully managed pricing and promotions.

In contrast to Carpetright’s troubles, the construction industry in the UK is reporting an upturn of 4%. Sales in Construction have not been as positive as the previous quarter, which was at 9.5%, but it is good news nevertheless.

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