“We’re a discounter and we have to accept that,” Lord Harris said.Analysts added a note of caution, however, saying that much of Carpetright’s gains had come from the one-off benefit of Allied Carpets’ recent decision to pull out of the market for roll-stock carpet, which customers can take home on the day.They said this flattered Carpetright’s figures and the underlying picture might not be so promising. Margins have been maintained and the group has returned to its policy of promotional discounting after abandoning its failed experiment with its lowest-price guarantee. But it has cut back on its store opening programme and will only open a net two new stores in the second half.Eight of the larger Carpet Depot stores have been converted into Carpetright, though sales in the Depot stores are holding up better than in Carpetright. Lord Harris said Carpetright was taking market share from rivals and its share of the declining UK carpet market stood at around 13 per cent. We’re small-ticket.” Lord Harris said that while people might be avoiding spending on cars and furniture, carpets appeared to be higher on shopping lists.”We’re first in a slump but we come out first too,” said John Kitching, managing director.The upbeat statement prompted a 13.5p jump in Carpetright’s shares to 210.5p. Though sales had flattened in December, he said the outlook was encouraging.
“If we can carry on the way we are, we will be very happy,” he said. “People tend to lump us in with big-ticket item retailers like furniture but our average spend is pounds 150.

CARPETRIGHT, the carpet retailer run by Lord Harris of Peckham, offered Britain’s embattled high streets some cause for optimism yesterday when it reported improving sales trends in recent months. Reporting a fall in half-year profits from pounds 16.2m to pounds 11.6m for the six months to October, Lord Harris said sales had been on an upward trend since August and that same-store sales in November, its strongest month, were up by 7.2 per cent on the same month last year. The shares edged ahead 1.5p to 38p; they were down to 26p in October. Sketchley, largely due to its retail side, has had a difficult time; its shares were around 140p in 1996.. The shares were around 101p when they arrived on AIM in the summer.SKETCHLEY, which sold its retail dry cleaning operations and now concentrates on providing textile and cleaning services to corporate clients, is back in the takeover frame There is talk that a German group is on the prowl. The company has been chosen as one of the European hi-tech groups to watch in a survey of venture capitalists and wealthy private investors. Its bid to raise up to pounds 3m at 50p through an open offer closes on Monday 3i, with 13.97 per cent, is taking up its entitlement.

A parcel of 2.9 million shares was eventually picked up by an institution at 51.5p. There was surprise that Wassall, a venture capital group which has been piling into BICC and now has 9.1 per cent, did not buy the unwanted shares.SEAQ VOLUME: 901.2 millionSEAQ TRADES: 66,251GILT INDEX: 115.15 +0.01TRICORDER TECHNOLOGY, developing 3D technology for digital cameras, held at 56.5p. Negative observations about the cable industry apparently did much of the damage Selling by a US investor was another influence. But its comments caused a short-circuit at BICC, down 5.5p to 57p.