Carpetright, Britain's biggest floor coverings retailer, has warned on its yearly profit and parted company with its chief executive.

The firm said today that chief executive Darren Shapland will step down from his role with immediate effect, replaced by chairman and founder Philip Harris, who will become full time executive chairman.

Graham Harris, currently Carpetright's trading director, will join the board and become chief operating officer.

The firm added that as a result of a combination of a softer UK market and a further step down in the Netherlands, it was likely that its full year profit will be significantly below previous expectations.

In the 10 weeks to September 29, sales at stores open over a year were down 2.5% in the UK and down 7.6% in the rest of its Europe division made up of Ireland, the Netherlands and Belgium.