Trading Statement

RNS Number:3006U
Peacock Group PLC
16 January 2004

                                                                 16 January 2004



                            THE PEACOCK GROUP PLC

                          QUARTERLY TRADING UPDATE


The Peacock Group plc is pleased to issue the following third quarter trading
update in line with its reporting practice.


Introduction

Overall, performance over this important trading period encourages the Board to
anticipate meeting expectations for the 53 weeks to 31 March 2004.


The Peacock Group

Management focused on improving profit performance by exploiting our
increasingly flexible supply chain and tight stock control systems. As a result,
neither division was required to take any unplanned reductions. This resulted in
a significant margin improvement in the period year-on-year, alongside a
satisfactory sales performance in the light of the market.


                                              13 wks to           39 wks to
                                             27 December         27 December
Total Sales                                     6.7%                11.1%
Like-for-like Sales                            (0.3%)                4.8%
Like-for-like Gross Profit                      3.8%                 9.3%





Divisional analysis


                                                                    13 wks to          39 wks to
                                                                   27 December        27 December
Peacocks                  Total Sales                                  6.4%              10.7%
                          Like-for-like Sales                          1.3%               5.8%
                          Like-for-like Gross Profit                   4.1%               9.4%

bonmarche                 Total Sales                                  7.2%              11.7%
                          Like-for-like Sales                         (3.2%)              3.0%
                          Like-for-like Gross Profit                   3.2%               9.2%



The Peacocks division achieved positive like-for-like sales and gross profit
growth in the quarter. Christmas week and the start of the Sale beat internal
expectations, despite lower levels of clearance stock than last year, as sales
on new Spring lines performed well.

bonmarche's sales performance was satisfactory against very strong one-off prior
year comparatives buoyed by clearing old and redundant stock which was in the
business at acquisition. Gross margins were significantly ahead. It is expected
that this gross profit growth will continue into the fourth quarter as
comparisons normalise.

New stores

A further 14 new outlets in Peacocks (including 5 in Somerfield/KwikSave and 2
4thehome stores) and 18 new bonmarche stores (including one relocation) were
opened in the quarter, bringing the chain sizes to 398 and 308 respectively.

Chairman's statement

Commenting on the trading update John Lovering, Chairman, said: "We believe our
performance has been pleasing in a testing market, partly reflecting our
decision to maintain full prices until Christmas. Although the environment will
continue to be tough, we are confident that we are well placed to meet our
expectations for the year."


Enquiries:

The Peacock Group plc                                    Hudson Sandler
Richard Kirk, Group Chief Executive                      Andrew Hayes/James Hill
Keith Bryant, Group Finance Director                     Tel:  [phone]
Tel:  [phone]




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