Argos chief plays down shop closures

Lewis Tyler

By Lewis Tyler

May 3rd 2012 at 11:17AM
Argos chief plays down shop closures

Terry Duddy says only seven stores are not making profit and 90 per cent of sales still come from physical retail.

In its end of year financial statement, the Home Retail Group said Argos would "focus on optimising its store network" by "relocating or closing some older stores and opening some new stores if attractive sites become available."

With the leases of 230 stores coming to an end in the next five years, the national press come to the conclusion that mass store closures could be on the cards for the retailer.

However, Argos chief Terry Duddy has today said this is not the case.

He told Reuters: "There will not be an en masse store closure programme announced in the near future."

He revealed that only seven of Argos's 750 stores were not currently turning a profit and added: "Nearly 90 percent of sales come through stores at some point.

"We have got 300 or so stores coming up for lease renewal or lease break over the next five years or so. Each of those stores, at the point the lease renewal comes up, will be reviewed."

In its 2011 financial statement Argos reported a 57 per cent slide in operating profit.