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UK Retailer Still Cautious After Slight Decline in Profits

Friday 02nd of November 2007 01:55:13 AM

Many UK retailers in the past year have seen declines in sales, but with the upcoming holiday season, large retailers like Woolworth's are confident they will see an increase. In order to prepare for the holiday shopping season, the company recently debuted its new discount line which includes a variety items from T-Shirts to home appliances.

"We are confident that, operationally, the businesses are in good shape, with strong customer propositions going into the critical Christmas trading period. However, we continue to be cautious about the trading environment and have planned accordingly by focusing on cost control, cash generation and margin enhancement," said Chief Executive Trevor Bish-Jones in a written statement.

In addition to Woolworth stores, the company also owns two entertainment companies, E.UK and 2 Entertain. The company overall has a 17% increase in sales in the last quarter which was "driven primarily by the acquisitions and contract wins within the entertainment wholesale business," said the company.

But with increased competition from other retailers like Tesco and Asda and online businesses, remaining competitive has been a struggle. Being able to offer products to consumers for less is one strategy that has worked in the past for many retailers.

Overall, the company seems ready for the upcoming holiday season and anticipates a profitable quarter.

(c)Dominic Morel, www.sxc.hu

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