KEY POINTS:
South Island-based Smiths City Group has joined the ranks of retailers hurting from the slump in consumer spending.
Managing director Rick Helling said trading conditions have become more difficult since mid-September, with sales for the six months ending October 31 down 8.4 per cent. Same store sales were down 7.7 per cent.
The 2009 financial year first-half performance excludes the sale of the wholesale building supplies business divested in the first half of the last financial year, he said.
"As a result of the lower sales and a lower contribution from the property company, which has not sold a property this six months, profit for the first half of this financial year is expected to be substantially down on the same period last year."
The company - which operates the home appliances and sporting goods Smiths City stores, consumer electronics outlets Powerstore and whiteware repair business Alectra - expects to release its actual half-year result next month. Its market guidance yesterday follows a string of disappointing results from other retailers.
Last week had started with Hallenstein Glasson and Briscoe Group both posting drops in quarterly sales.
The bad week was capped off by The Warehouse Group's 2.1 per cent decline in first-quarter sales to $366.6 million, and Wellington-based Kirkcaldie & Stains' 30 per cent drop in annual profit.
Smiths City Group shares closed yesterday unchanged at 37c.
