UK inflation has peaked, claims outdoor chain boss

The boss of outdoor clothing retailer Mountain Warehouse said yesterday the UK’s surging inflation had peaked as he unveiled a near-20% rise in half-year profits.

Chief executive Mark Neale added he was not surprised that inflation held steady last month.

Price tags at Mountain Warehouse were already starting to fall, he said, adding: “I certainly see no more inflation in the system from our point of view and I cannot see much more currency-related inflation in anybody else’s (businesses) really.”

The Consumer Prices Index (CPI) was widely expected to reach 3.1% in October, up from 3% in September, intensifying the squeeze on consumer spending power in advance of the Christmas season.

Instead, CPI held steady at 3% – leaving economists split on whether inflation has finally topped out or will continue to push higher, with the Bank of England forecasting the cost of living to reach 3.2% during the autumn.

Mountain Warehouse brushed aside woes enveloping UK high streets, lifting pre-tax profits 18% to £4.7million and opening 18 new stores in the UK and overseas during the six months to August 27.

Sales rose 19% to a record £91.6million, with the firm’s international business proving a standout performer after sales surged 50% – about 25% of total revenue.

The retailer, which employs around 2,250 people at more than 270 shops, including outlets in Inverness, Aviemore, Fort William, Oban and Elgin, said online sales climbed 19% over the period.

Mr Neale also revealed plans to expand Zakti, a sister brand aimed at younger customers, into Mountain Warehouse stores.

The firm created 200 jobs over the period and plans to add another 100 by opening 10 stores in the second half of its trading year.

Mark Neale, chief executive of Mountain Warehouse