Instore, the discount retailer, has blamed increasing costs at its distribution warehouse for its second profit warning within a month.
The owner of the Poundstretcher chain said it had “seen a significant shortfall in sales against internal expectations” in the past four weeks, indicating that the full year profit to 25th February, would be substantially below market expectations.”
Shares fell by 10.5p on Monday, to just below 44p. Instore have partly blamed increasing operating costs at its new distribution centre, which have continued to run ahead of projections.
Angus Munro, chief executive said he was expecting like-for-like sales growth of zero to one per cent in the coming financial year. He said “we have had a particularly poor time on clothing. The Instore brand has performed better than Poundstretcher.”