LIVERPOOL retailer TJ Hughes has continued to improve its margins as its strengthens its trading position.

The firm, which opened its first store in the city in 1912, saw pre-tax profits increase by more than £1.5m to £6.8m in the year to January on an annualised sales growth of 4%.

The accounts, just lodged at Companies House, show sales of £266.7m were achieved at its 52 stores, plus its online store, and the company has since opened outlets in Belfast and Blackpool.

In the directors’ report, it said: “During the current period, the company has performed well in difficult economic circumstances.

“While the economic outlook remains poor, the company expects to continue the trend of sales growth, through new store openings, whilst maintaining gross profit percentage and controlling costs.”

TJ Hughes has a “lowest price in town” strategy, which sees it compete on a wide range of clothing, household and electrical goods, including premium brands.

The retailer has seen steady growth in its operating profit, before exceptionals in the last three years.