Total sales at Argos increased 4.3 per cent in the 14 weeks to January 6, of which new space contributed 4.1 per cent. Like-for-likes were up 0.2 per cent. Online sales climbed 37 per cent in the quarter, representing 19 per cent of total sales.
Argos opened eight stores during the 14-week period, bringing its portfolio to 681.
Sales at Homebase declined 0.2 per cent, with like-for-likes down 2.9 per cent on last year. The planned level of promotional activity, together with tough comparables, resulted in lower big-ticket sales than last year. However, the decline was offset by good performances from homeware categories including lighting, home security, paint and flooring.
Home Retail Group chief executive officer Terry Duddy said: 'Our trading approach in the period reflected an expectation of the general merchandise market becoming more difficult. A less promotional stance, together with good operational control, proved very successful in a market that showed little or no growth until just before Christmas.
'We expect profits for the full year at both Argos and Homebase to near the top of analysts' expectations. The retail environment is likely to remain challenging and we continue to position our business accordingly.'
The company added that gross margin was well ahead of last year, driven by benefits from supply chain initiatives and lower promotional activity.
No comments yet