Comet blazing a trail in Kesa sales

DEMAND for digital goods, flat-screen TVs and multimedia helped High Street electrical retailer Comet come through Christmas in good shape after a weak November.

Like-for-like sales at the electricals chain, owned by Kesa, rose 3.9% in the two months to 3 January, excluding extended warranties. Total group retail sales grew 10.8%, or 4.5% in local currency.

Other arms of Kesa's group fared less well, including its biggest business, French electricals chain Darty, which saw underlying sales ahead by just 0.3%. French furniture chain BUT continued to struggle, with like-for-like sales off 0.2%.

Sales of extended warranties were hit by negative publicity generated by the long-running competition inquiry into the industry which, together with continued weakness in the French furniture market, has resulted in a 'slightly reduced' gross margin, the group said.

Chief executive Jean-Noel Labroue said: 'The positive sales trend in December has continued into January and, with our continued cost control programme, we are confident we will deliver results in line with market expectations.'

Kesa, spun off from Kingfisher, reports full-year results on 31 March.