Carpetright CEO Says 'Double Dip' Likely

London, England, May 3, 2010--Carpetright Chief Executive Philip Harris said a "double dip" in the UK economy was likely as his firm reported its second downbeat trading update in five weeks.

The firm, which which has 586 stores in the UK and Ireland, regards itself as typically "first in, first out" of recession.

However, a sales recovery seen towards the end of 2009 had not been sustained, much to the surprise of Harris.

"Everyone talked about a double dip and we did," he told analysts. "Christmas, September, October, November were very very good. (But) I've never seen a time where it goes very very good, where it goes back so much (as) it did in January and February.

"January I understood with the snow ... But I'm disappointed we haven't had the recovery in February and March like I expected because it doesn't normally go like that." Harris cautioned that the downturn Carpetright has seen could follow in other parts of the retail sector.

"Does it mean that we're going to have a double dip with the other people (retailers) coming to it, the fashion people who have had a good run? Probably yes," he said, predicting a tough 2010.

Carpetright said sales at UK and Ireland stores open over a year increased 1.5 percent in the 12 weeks to April 24, the bulk of the firm's fourth quarter.

The outcome was below internal expectations.