Smiths City appears to be following the recent retail trend after reporting a fall in its trading profit for the six months to October 31.
Chairman Craig Boyce said trading conditions through the second quarter and into November were competitive but the run-up to Christmas had been stronger, with the traditional spending pattern emerging.
The Christchurch retailer, which operates throughout the South Island and in parts of the North Island, reported a trading profit of $2.45 million, down nearly 8% on the $2.66 million in the previous corresponding period.
Revenue was up 0.9% to $109.4 million from $108.5 million.
The reported result was boosted by insurance proceeds of $2.87 million for the damage to Smith City's Colombo St, Christchurch, which the company included in its operating profit. The before-tax profit was $4.44 million, up significantly on the $2.1 million in the pcp.
Smiths City has carry forward tax losses of $11.5 million and is not liable for tax.
Mr Boyce said the board was pleased to complete the rebuild of its flagship Colombo St store in October.
The store was now the largest furniture, bedding and appliance store in Christchurch.
The company also relocated the Rotorua and Palmerston North stores to more prominent locations.
''The overall economic outlook is uncertain. While Canterbury continues to show some growth, the fall in the Fonterra payout may have some impact on demand in the rural sector.
"Although we have not seen that yet, our feeling is large segments of the rural sector are better placed to handle these conditions than may have been the case in the past.''
