Eason pares back losses amid decline in retail sales

IRISH-OWNED books and stationery retailer Eason Son Ltd reduced its losses last year in spite of another decline in its core retail sales here.

Accounts provided to The Irish Timesshow losses at the family-owned group fell to €4.4 million in the 52 weeks to the end of January 2011, compared with €10.1 million in the previous year.

In 2009, Eason’s bottom line was hit by an exceptional charge of €5.8 million from the disposal of British Bookshops Stationers plc.

On a like-for-like basis, Eason’s retail sales in Ireland fell by 5 per cent last year.

But the acquisition of seven Hughes Hughes shops at Dublin and Cork airports added €16.8 million to its turnover and resulted in Eason’s sales rising by 6 per cent overall in the period.

The boost from the airport shops will not be repeated this year. This follows the opening of Terminal 2 at Dublin airport, which has resulted in roughly half the traffic being moved from the old building.

British retailer WH Smith has secured the exclusive rights to sell books and newspapers for T2, and Eason estimates that its revenues from airport shops will decline by about 40 per cent this year.

Eason’s overall turnover, including income from South Africa and joint ventures, fell by 2.8 per cent last year to €297.6 million.

The company took property impairments of €5 million last year, including €3.5 million for its Belfast city centre store.

It also booked an impairment charge of €4.3 million relating to South Africa.

The results were presented to Eason’s 200-plus shareholders at its AGM on Tuesday night.

Conor Whelan, managing director, told The Irish Timesthat trading continues to be "very difficult" for the group.

“There’s been no upturn in consumer sentiment; the trend has continued from the end of last year. It’s still a tough environment.”

Eason recently announced plans to invest €20 million over the next three years to exploit e-commerce opportunities, launch a loyalty card and refurbish its network of stores.

It recently opened two new websites: Easonoffers.com and Easonschoolshop.com.

“They will be ramped up over the coming months,” Mr Whelan said.

It will also shortly open shops in Balbriggan, Carlow and Kilkenny.

Eason is negotiating with unions on a cost reduction plan aimed at shaving €8 million a year from its cost base.

This will involve job cuts among its 1,200-strong workforce.