THE country’s largest floor-covering retailer Carpetright warned profits would be at the low end of expectations as the consumer spending squeeze took its toll.

The group, which has 503 stores in the UK and 643 in total, said UK same-store sales fell by 3% in the 12 weeks to October 22.

Chairman and chief executive Lord Harris said heavy promotions and a higher proportion of beds in the sales mix had hit profitability at the chain, which has already issued two profits warnings this year.

As a result, underlying pre-tax profits would be at the lower end of current expectations of £11.8m to £16.9m compared with £16.9m in the year to April.

Carpetright has already warned it expects current tough conditions to continue for some time, with recent housing and retail sales figures giving little reason to change that view.

The chain has been rolling out cost-cutting measures including store closures, which has seen the number of outlets reduce by 11 in the period.

Lord Harris repeated his assessment that the challenging trading environment across Europe will continue for the rest of our financial year.

Carpetright expanded its beds business earlier in the year, which now represents about 6% of revenue.

Carpetright said it would launch a “significantly improved” beds range in the third quarter.

A roll-out of a new laminate flooring offering is progressing, it added, while the website is being developed to help drive store footfall.