Bonuses and pension contributions increased the total to pounds 999,000. Though this is only marginally higher than the previous year's figure of pounds 949,000 this is because Sir Geoff received a lower pensions contribution last year than in 1995 when the contribution was pounds 271,000. Justifying the pay, a Kingfisher spokesman said: "The executive directors have not had a pay rise since August 1993 and the long-term incentive payments were decided by the remuneration committee. This is due to sluggish sales of "inadequate" merchandise which have further been depressed by attempts to sell at closer to full price.. Reporting a dramatic slump in profits from pounds 10.7m to pounds 152,000 for the six months to 31 January, Etam warned that it was likely to record operating losses higher than the pounds 660,000 deficit reported in the first half last year. "We have received no approaches or expressions of interest," he said. However, he confirmed that he had twice been asked by the Stock Exchange if any approaches had been made after recent sharp increases in the Austin Reed share price.Etam's tale of woe continued as it attempts to move away from a culture of permanent discounting.

This year the company has returned to more formal, structured suits and says sales are responding.Menswear performed better though margins were affected by higher marketing costs. Austin Reed has opened a shop under the Marlboro Classics name at Heathrow's Terminal One in the last few weeks. Trading is strong and more may be added.Mr Thomson played down speculation that the company may be taken over by Moss Bros, Burton or Next. However, Austin Reed is seeing a glimmer of recovery with sales in the last 12 weeks 8.6 per cent higher than the same period last year.Finance director Chris Thomson, who takes over as Austin Reed's chief executive in June, said: "I think there are some encouraging signs that customers are coming back to the high street I'm not sure it's a feelgood factor.

It's just less of a feelbad factor."Austin Reed saw pre-exceptional profits slump from pounds 5.8m to pounds 3.4m due to a poor year in its womenswear division. The company moved from its traditional tailored look to a more fashion-conscious offer but found it unpopular with customers The stores had to discount the stock to clear it. Recently knighted chairman Sir Graham Kirkham also unveiled an expansion programme that will see DFS open stores in London for the first time this year. Stores in Croydon, Sidcup and New Malden will open by July. "We are not budgeting for any upturn but if there is any improvement we will be able to take advantage," he said.Etam said the market remained "difficult" and the 226- strong chain has seen sales decline in recent weeks as its customers continue to seek discounted merchandise. The company blamed the poor winter weather and the lack of improvement in the housing market. Only DFS Furniture, the out- of-town specialist, managed to buck the trend with a 16 per cent rise in profits to pounds 15m at the half-year stage.

The feelgood factor looked as elusive as ever on the high street yesterday when two clothing retailers, Etam and Austin Reed, reported sharply reduced profits while the Wickes DIY group warned that its first- half profits would fall "significantly below" last year's pounds 9m. However, the Office for National Statistics cautioned that this year's early Easter had boosted March sales compared with last year.Elusive feelgood factor, page 18. In the latest three months textile, clothing and footwear stores have enjoyed a 1.4 per cent rise in the volume of sales, and food stores 0.7 per cent growth. On the other hand sales at non-specialised stores such as department stores fell 0.8 per cent and volumes at specialist shops like jewellers, butchers and bookshops were down 1.1 per cent.Compared with a year earlier the strongest growth in the three months to March was seen by household goods stores, but their sales have been flat since the beginning of this year.The value of retail sales grew by 7.1 per cent in the year to March, the fastest rate for five years. But the improvement by itself does not rule out a further interest rate cut,'' said Adam Cole, an economist at brokers James Capel.The volume of sales rose by a very modest 0.2 per cent in March, less than expected because February's figure was revised upwards. Sales grew 2.2 per cent in the year to March, the same as in January and otherwise the highest since February 1995.Labour seized on the small monthly increase to throw doubt on the Government's claimsconfidence is reviving.

''These disappointing retail sales figures are confirmation of sluggish growth and consumers' apprehension about economic prospects,'' said Andrew Smith, shadow chief secretary to the Treasury.However, most City economists reckon retail spending is picking up. Geoffrey Dicks at NatWest Markets said: ''Consumers may not yet be feeling good, but they are certainly feeling less miserable.''The retail revival is patchy, however. Next month's monetary meeting on 8 May, a few days after the local elections, is seen as the likeliest date for a move if there is going to be one.''The trend in retail sales is quite good and getting better. Annual growth in the volume of sales on the high street returned to its highest rate for just over a year, but the increase during March disappointed City expectations. If figures for GDP due on Monday show the economy grew only modestly during the first quarter of this year, many analysts expect Chancellor Kenneth Clarke to sanction a further cut in the cost of borrowing. It said its plan to make pounds 400m efficiency savings by 1997 was on track.Investment Column, page 18.