Retailer Smiths City Group is feeling the pain of recession as consumers keep their wallets in their pockets.
Retail figures released by the Department of Statistics on Friday showed retail sales recording their largest ever quarterly fall.
Furniture and floor coverings fell 3.5% in March, hardware was down 4.5% and appliances were down 5.9%.
In the company's first half-yearly report to shareholders, Smiths City reported total sales for the six months to October 2008 were $114.2 million, down 14.3% on the same six-month period in 2007.
Of the 14.3% decline, 6.7% was because of the disposal of a business during the first half of 2007, managing director Rick Hellings said.
Same-store retail sales were down 7.7% and profit was down 54.4%.
In the six months to April, total group sales were $113 million, down 5.65% on the previous corresponding period.
Same-store retail sales were down 4.5%, with all available evidence indicating the company had increased market share in the furnishing category and held market share in the appliance category, he said.
"However, this sales result was achieved in a highly competitive market and at the expense of margin. Accordingly, it is anticipated that full-year profit will be substantially down on last year."
Net bank borrowings at April 30 would have reduced by 10% to about $26 million of which $14 million related to the group's freehold property at the Christchurch head office site, Mr Hellings said.
Full-year results would be released in June.
Looking to the next financial year, Mr Hellings expected big ticket trading conditions to remain similar to this year.
"The company expects to see improvements in profitability result from continued improvements in control of working capital, reductions in operating costs and improved efficiencies through investment in point-of-sale and other technologies," he said.
