Kesa Electronics, owner of Darty electronic stores in France and Comet here in the UK, took a record hit on the market today in a further signal that the UK consumer is beginning to feel the pinch in his pocket. Shares dropped 9.2% after the company announced a significant drop up in sales growth for the third quarter. The fall off in sales was especially pronounced in UK stories, notes Sarah Thompson on Bloomberg, with higher interest rates being blamed by the company for the fall in spending.
But with rising mortgage payments and utility bills eating into household budgets, it's hardly surprising that the British consumer isn't forking out for a new dishwasher or clothes dryer. Sales of so called white goods such as washing machines and refrigerators fell two to three per cent at Kesa stores during October, compared to 'low single digit' growth the in the goods last year. Kesa's shares have already fallen 34% this year, erasing all of last year's gains.
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