Postie Plus q1 same store sales ease

Clothing retailer Postie Plus' first quarter same store sales fell one per cent it said today.

The company 's overall sales for the three months to the end of October at $23.56 million were up on the same period last year.

However, this was due to an increased number of branches and sales across the group were below expectations, managing director Paul Young said in a statement to the NZX.

"Overall, the retail market, for a number of sectors, is becoming increasingly difficult, with many retailers spending more on advertising to achieve the same -- and in some cases, lower -- sales levels," Mr Young said.

Other factors affecting sales were "the slow start to summer and climate inclemency", Mr Young said.

Mr Young said was difficult to forecast the company's likely profit for 2004 for a number of reasons, including seasonal factors, and the early stages of its recent acquisition of Rendells locations in Auckland.

Other factors that may affect the company were " a less favourable retail environment, competitive activity, a stronger New Zealand dollar resulting in price deflation and a growth in retail space now exceeding growth in retail sales".

Postie Plus shares which listed on the stock exchange's main board in September last year closed at 98c yesterday.

- NZPA