In a second-half pre-close trading update, GUS said like for like sales at Argos were flat in the six months to March 31. Total sales were up 9 per cent because of store openings, which included 33 former Index stores.
The star performer was the Argos Direct home delivery operation, which now represents more than 20 per cent of sales. Within that, internet sales rose 39 per cent and now make up 7 per cent of revenue.
Homebase was hard hit by difficult trading in the DIY market, with like-for-like sales down 5 per cent in the five months to February 28. While kitchens and furniture performed well, this was cancelled out by big falls in core DIY and decorating products.
Increased promotional activity hit the gross margin and the company said it expects the DIY market to remain weak for much of this year.
'We continue to remain cautious on the outlook for UK retailing, especially in DIY,' said GUS chief executive John Peace. 'However, sales at both Argos and Homebase again outperformed their markets.'
Once again, GUS's star performer was Experian, which increased sales by 25 per cent in the second half. Much of this was through acquisition, although the existing business delivered 9 per cent growth. Experian is due to be spun off as a separate company from the retail businesses later this year.
GUS reveals full year results on May 24.
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