Carpetright's figures also contrast with its rival floorings business, Headlam, which said yesterday sales continued to be strong as it reported a 9 per cent increase in pre-tax profits for the first half of 2005. Profits reached £18.2m, with revenues lifted by a 3 per cent increase in like-for-like sales. It said it was confident about its prospects for the rest of the year. Tony Brewer, the chief executive, said: "We believe this result has outperformed market conditions and therefore, the group has continued to increase its market share."

Carpets make up about 50 per cent of Headlam's sales, while vinyl, wood and laminate flooring make up the remainder. It put its success down to its locally focused businesses, which helped it weather the difficulties in the retail sector.

Shares in Carpetright nudged up more than 1 per cent to 937p on hopes it will see through the consumer downturn. Rhys Williams, of Seymour Pierce, said: "The trend in like-for-like sales in the past four weeks is more positive, it has managed to gain market share, costs have been controlled and margin growth remains on track."

Carpetright, the UK's largest carpet retailer, warned yesterday that the consumer slowdown was continuing, after reporting a sharp slide in sales as customers reined in their spending on refitting new homes.

Like-for-like sales fell 7.5 per cent in the 15 weeks from the end of April. Lord Harris of Peckham, the chairman and chief executive of Carpetright, said: "Trading in our UK and Republic of Ireland business has remained difficult due to a weak consumer environment combined with strong comparatives from last year."

About a fifth of the group's sales are from customers who are moving home, and the slump in the housing market has affected trading. All retailers have been experiencing a slowdown in business, with the British Retail Consortium recently reporting the poorest July in 10 years.

The collapse of the Allders department store chain has also hit Carpetright, causing a 2 per cent drop in sales and profit after 21 Allders outlets in which it had a concession were closed. The company still trades from 26 former Allders stores, including those bought this year by its competitors, Debenhams and Bhs.

In contrast to the UK, Carpetright's European stores have seen better trading. Like-for-like sales at its Dutch and Belgian stores increased 6.3 per cent over the period. It is hoping to double its market share in both countries to 6 per cent over the next three years.

Carpetright's figures also contrast with its rival floorings business, Headlam, which said yesterday sales continued to be strong as it reported a 9 per cent increase in pre-tax profits for the first half of 2005. Profits reached £18.2m, with revenues lifted by a 3 per cent increase in like-for-like sales. It said it was confident about its prospects for the rest of the year. Tony Brewer, the chief executive, said: "We believe this result has outperformed market conditions and therefore, the group has continued to increase its market share."

Carpets make up about 50 per cent of Headlam's sales, while vinyl, wood and laminate flooring make up the remainder. It put its success down to its locally focused businesses, which helped it weather the difficulties in the retail sector.

Shares in Carpetright nudged up more than 1 per cent to 937p on hopes it will see through the consumer downturn. Rhys Williams, of Seymour Pierce, said: "The trend in like-for-like sales in the past four weeks is more positive, it has managed to gain market share, costs have been controlled and margin growth remains on track."

© 2005 Independent News & Media (UK) Ltd.