Argos sales slip two per cent - ToyNews

Argos sales slip two per cent

The retailer's parent company, Home Retail Group, has reported its results for the 26 weeks to 29 August 2009.
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The results showed a growth in market share at Argos and Home Retail Group's overall sales were up three per cent to £2,805m, compared to £2,736m in 2008.

Like-for-like sales slipped by two per cent at Argos, however, and profits for the half-year were down £6 million at £79.7 million.

Terry Duddy, chief executive of Home Retail Group, commented: "The trading performance at both Argos and Homebase exceeded our expectations. Whilst the consumer environment proved challenging, we have adapted well and maximised the benefit from more favourable weather conditions for Homebase.

"Our focus on cash margin and an extremely tight control of costs have been the clear drivers of a successful first half performance."

Home Retail opened nine new Argos stores in the period, taking its portfolio to 739 and said there was potential to open another 20 a year.

The group said new stores were mainly situated in out-of-town retail parks, although there will also be some new locations in smaller towns as well as further sites sought for its smaller store format within larger cities.

The Argos winter catalogue has this year been expanded with 400 new lines to 19,200 products, while the company is in the process of refreshing the Argos brand.

Looking forward, Duddy concluded: “We continue to plan cautiously for consumer demand over the remainder of the financial year, and there will also be a more significant impact from adverse currency movements during this period.

"The Group’s operational and financial strength will continue to sustain our competitive advantage in the market place.”

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Argos sales slip

Home Retail Group reports sales decline since the beginning of 2010 of 9.4 per cent year-on-year.

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