Argos won't close stores

Home Retail Group boss says the retailer's current strategy is fine.
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Terry Duddy, CEO of the Home Retail Group, has said that Argos is on the right path, despite retail analysts calling for store closures, Reuters reports.

Speaking at a media dinner on Tuesday, Duddy said that the group had given the Argos plan a "full and hard check."

He said: "It was a hard reflection of where we were and it tells us that we believe our strategy's right."

Argos' finance director Matthew Smith said: "Hypothetically even if we did have lots of loss-making stores, we couldn't exit them anyway," referring to the long leases held by Argos stores, which are around seven years long on average.

He added: "Our view looking forward is we think we can grow our store estate even further."

Argos currently has 754 stores in its porfolio.

The catalogue retailer's sales dropped 8.6 per cent in the second quarter, preceeded by a 9.6 drop in Q1.

However, in June Argos said that its toy business was performing well, and attributed the poor performance to a decline in home entertainment and video game markets.

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