PRG has reported stronger than forecast Christmas sales for its British retail chain PowerHouse and says it will cull non-performing stores.
PRG, which was formerly named Pacific Retail Group, said PowerHouse's top 53 stores delivered same store sales growth of 4.9 per cent in the four weeks to January 14.
Eric Watson-controlled PRG bought Powerhouse -- Britain's third-largest electrical goods retailer -- from its receivers in 2003 for $47 million.
But turning the chain around has been more difficult than expected.
Total sales over the December quarter fell 39 per cent, following the closure of a number of stores over the past year.
Powerhouse recently closed 31 loss-making stores. These stores posted a 13.9 per cent loss in same-store sales over the Christmas period.
PRG said it was in the process of settling liabilities with the landlords.
Powerhouse said it planned to focus on the performance of its top 53 stores and to move ahead with closing its remaining non-performing stores.
Powerhouse chief executive Chris Onslow said it had become clear that despite restructuring and efficiency gains the underperforming stores were not up to par.
"The positive sales trends experienced in our top stores have shown that now is the right time to move to the final stage of our reconstruction program, and to close the remaining underperforming stores," he said.
He said Powerhouse remained on track to break even in the 2006/2007 financial year.
- NZPA
