Stylo, the company behind Barratts and Priceless, has said trading since its interim results has been below expectations.
Stylo said in a statement that as a result of a drop off in sales since it reported its interim results in October, it had commenced promotional events across all of its stores and that the initial results had been positive.
Stylo said that whilst gross margin would be affected by the promotional discounts, stock levels and costs continued to be managed tightly and that the board would concentrate on delivering cash into the business.
Stylo said it would continue to be pro-active in its promotional activities where and when appropriate and that worsening trade had re-emphasised the need for it to implement its strategic recovery plan, which focuses on new store fits for Barratts and targeting a broader family-type customer.
Stylo saw pre-tax losses widen to £9.3 million for the first half of the year.