ChristmasTrading Statement

RNS Number:2535U
Merchant Retail Group PLC
15 January 2004

15TH JANUARY 2004



MERCHANT RETAIL GROUP PLC

(The Specialist Perfumery Retailer and Department Stores Group)



EXCELLENT GROUP PERFORMANCE



TRADING STATEMENT ON 7 AND 40 WEEKS TO 3 JANUARY 2004



*     The Perfume Shop

              -  Like for like sales up 11% in the 7 weeks

              -  Like for like sales up 12% in the 40 weeks

              -  Overall sales up 23% in the 40 weeks

*     Joplings

              -  Like for like sales down 9% in the 7 weeks

              -  Like for like sales down 5% in the 40 weeks

*     De Gruchy

              -  Like for like sales down 8% in the 7 weeks

              -  Like for like sales down 4% in the 40 weeks


Merchant Retail Group plc, the specialist perfumery retailer and department
stores group, is pleased to report another strong group performance.  The
Perfume Shop, which contributes over 75% of the Group's sales in this important
trading period, has had an excellent Christmas period throughout the country.
The Group's Department Stores have fared less well in what was generally
accepted as difficult trading on the High Street.

Group sales for the 7 weeks to 3 January 2004 were up 14% on the same period
last year and 5% up on a like for like basis. In the 40 weeks to 3 January 2004,
overall Group sales were ahead 11% against the same period last year and 4% up
on a like for like basis.


The Perfume Shop

The Perfume Shop has continued to prove its resilience in a challenging trading
environment. The 97 branches delivered a strong overall sales increase of 23%
for the 7 weeks, but more impressively 11% on a like for like basis. Like for
like sales in the 40 weeks to 3 January 2004 were up 12% with overall sales for
the period up 23%.

During the year 12 new stores were opened in the United Kingdom. Two further
stores were added in Dublin, both of which are trading above expectations and
Eire is a country where we see scope for additional growth.  In addition to
this, the Watford store was re-sited with great success.  Lease terms have been
agreed on 4 new outlets for 2004, with negotiations at an advanced stage for a
number of others.

We have said previously that our ambitions are for a 20% share of the UK perfume
market and we believe that this can now be achieved in the foreseeable future.


Joplings

Joplings like for like sales were down 9% in the 7 weeks and down 5% in the 40
weeks to 3 January 2004.

The department store sector has experienced tough trading conditions for some
time and Christmas saw no let up to this.  Almost the entire industry was in
promotion from the beginning of November, but the customer continued to delay
purchases in the knowledge that the traditional January sales period may offer
even further value.  Joplings was no exception to these circumstances and its
performance can only be considered disappointing.  However, we have a good
freehold store portfolio, future potential in Tynedale Park, a long and
established customer base, and excellent people in our department store
business.  All this means we remain confident that once market conditions
improve we will be able to take full advantage and improve returns once again in
this business.


De Gruchy

Like for like sales at de Gruchy were down 8% in the 7 weeks and 4% in the 40
weeks to 3 January 2004.

Jersey also experienced the same challenging spending environment and de
Gruchy's performance was affected as a result.  The next phase of our
investment, a major refurbishment of a substantial part of the ground floor,
will commence this month and be completed during April. We remain confident of
the future for this business and the returns that will be generated from our
investment plans.


Outlook

A strong performance again by The Perfume Shop and still significant
contributions from our department store business provide us with continuing
confidence for the future.  As the important sales in the Christmas and January
periods are now almost complete we again anticipate reporting significant growth
for the Group, with full year results in line with market expectations.


For further information please contact:
Philip Newton/Jeremy Seigal, Merchant Retail Group    01494 894000
Julia Bolsom, Merchant Retail Group                   01494 894054/07710 474699
Ann-marie Wilkinson, Beattie Financial                0207 398 3300/07730 415019


Note

1. "Sales" includes concession sales on a gross basis.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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