Shares in furniture group MFI slipped 3% today as it said sales at its core UK retail arm had continued to struggle over its winter sale period.

Same-store orders at the London-based chain dropped 4% between Boxing Day and March 21 compared with the same period last year, with its bedrooms and beds department still underperforming.

The update from MFI, which also runs the Howden Joinery business and French Hygena Cuisines arm, was "broadly in line" with the trend reported last month, the firm said.

In its annual results the group said that same-store orders were down 2% on a year earlier.

Strong competition at the start of the post-Christmas sale - when a record number of retailers decided to open on Boxing Day - were among factors blamed for the fall.

The group, which has 214 MFI outlets, was also affected by its refurbishment programme, which meant the introduction of fewer new products, particularly lower-priced kitchens, bedrooms and beds.

Although today's trading statement revealed that its bedrooms and beds department continued to underperform, total kitchen orders were up on the same period last year, while bathrooms and sofas were "growing rapidly". Total orders in the UK retail arm were down 3%.

Overall group orders for the period were £487 million, an increase of 3% on a same-store basis.

MFI added that its Howden Joinery division posted a 25% increase in total sales and a 20% improvement on a same-store basis.

Howden, which supplies products to kitchen and bedroom furniture fitters, has 300 depots in the UK and plans to open another 30 in 2004.

Hygena Cuisines recorded a "strong" performance with total orders up 33% and same-store orders up 19% in local currency.

Tuesday March 23, 2004