In April, when we updated the market, we put forward our view that life on the high street was tough and that we were therefore planning on the basis of subdued sales. What we have seen since then has confirmed this view.
We are therefore reiterating our full year guidance for 05/06. We are planning for like-for-like sales growth for the full year of 0 to 2 per cent and we expect a further 2 per cent contribution from new space.
We expect gross margin to be broadly stable. We will continue to invest in price, but we expect to be able to offset this by better sourcing which should yield improvements in the cost of goods.
We expect costs to increase by 6 per cent as we continue to modernise our business and add new space.
