Gross Margin
| Reduction in Gross Margin (%) |
04/05 Plan |
H1 Actual |
|---|---|---|
| 03/04 Lower Prices You'll Love and generics | 60bp | |
| 04/05 Lower Prices You'll Love | 50bp | |
| 110bp | ||
| H1 | 130bp | 180bp * |
| H2 | 80bp |
- * Variance £10M
Notes
At the prelims in May, we said gross margin for the year would be down around 110bp with most impact in the first half.
By the end of September we had a £10 million variance equating to an extra 50bp reduction for the first six months.
This was due to the clearance of seasonal merchandise and some higher promotional uplifts.
We expect this shortfall will be corrected in the second half.
