UPDATE 1-Kesa charges for store displays at Comet - report

Tue Jan 27, 2009 3:58am EST

* Suppliers told to pay up to 15,400 stg for displays - FT

* Kesa says in regular supplier talks, no further comment

(Adds Kesa comment)

LONDON, Jan 26 (Reuters) - Kesa Electricals KESA.L, Europe's third biggest electricals retailer, has told suppliers to pay up to 15,400 pounds ($21,500) to display products in its Comet stores in Britain, the Financial Times newspaper reported.

Bob Darke, Comet's commercial director, wrote to suppliers in early December to tell them he would be imposing the new charges from Jan. 1, as the group tries to ease the effects of an economic downturn, the FT said in its Tuesday edition.

Britain's Kesa, which also owns French market leader Darty, reported a 2.5 percent fall in like-for-like sales at its Comet stores in the 10 weeks to Jan 8.

A Kesa spokesman said Comet was "in regular dialogue with its suppliers, particularly during these turbulent times and challenging retail market conditions. These discussions are commercially sensitive and we will not comment on agreed terms and conditions".

At 0850 GMT, Kesa shares were down 0.3 percent at 99 pence. (Reporting by Matt Scuffham, editing by Dan Lalor)