Retailer Bonmarche (LON: BON) has issued a profit warning, blaming the difficult high street conditions.
The group now expects pre-tax profit to reach £5.5 million compared to a previous £8 million.
Bonmarche said that whilst high street stores were experiencing a tougher time, online stores continued to perform well.
Online sales grew by 34.5 percent whilst instore sales fell 4.5 percent.
After a strong first quarter, the retailer said a lower footfall and the warmer summer had led to a decrease in sales.
“The continuation of warm weather for an extended period may have delayed demand for early autumn stock, but we believe that the more dominant factor is that underlying consumer demand for the UK high street is weaker which is impacting footfall,” it said.
The high street has faced a tough year with names including House of Fraser, Maplins and Toys R Us to collapse.
House of Fraser was rescued by Sports Direct’s (LON: SPD) Mike Ashley in a £90 million deal.
Bonmarche chief executive, Helen Connolly, said: “These are undoubtedly challenging times in the retail industry and, in common with many other businesses, Bonmarche’s store trading has been impacted by weaker consumer sentiment and footfall.”
“We have continued to improve our proposition, particularly our digital capabilities, reflected in the strong online sales.”
“We remain focussed on exploiting the opportunity afforded by the increasing demand for online shopping, whilst modernising the store offer and customer experience.”
“Whilst it is disappointing that FY19’s (full year 2019’s) result is expected to be lower than originally planned, despite the challenging market, the health of the business remains strong.”
Shares in the group have plunged over 16 percent on the news.
