Argos pushes for growth with Extra catalogue trial

Catalogue store group Argos, controlled by retail conglomerate GUS, is testing a giant new catalogue that will launch into large stores if successful.

The catalogue, Argos Extra, is being tested in five shops in the Southwest from this week but could be introduced to 80 big stores, said GUS group finance director David Tyler.

The test outlets will be Gloucester, Cardiff Bay, Bristol Cribbs Causeway, Taunton, and Merry Hill in Dudley. The catalogue carries 4,500 more product lines than the standard 11,600-strong catalogue. These will include extra home furnishings, lighting, kitchen and bathroom products.

Argos Extra will be used to test new products. Tyler said: 'It's an opportunity to see the next stage of growth in stores.'

Like-for-like sales at Argos, excluding Argos Additions and Jungle.com, increased by 7 per cent in the three months to December 31, while overall sales grew by 14 per cent.

At the home shopping division, relatively strong sales for direct catalogues were held back by a poor performance at the agency catalogues. Tyler said every effort is being made to improve home shopping sales, which were 8 per cent lower than last year. He said closing the division is not considered an option.

Sales at Burberry - in which GUS has a majority stake - increased by 33 per cent and retail sales increased by 64 per cent, driven by existing and new stores.

Last month, Argos completed its acquisition of DIY retailer Homebase.