11th Jun 2015 06:18
LONDON (Alliance News) - Home Retail Group PLC Thursday reported a drop in total sales in both its Argos and Homebase businesses in the first quarter of its financial year, but a rise in like-for-like sales in Homebase as it continues with its 'Transformation Plan' and store-closure programme.
The owner of the Argos electronics and general merchandise chain and the Homebase DIY chain said that total sales in Argos declined 2.6% to GBP846 million in the 13 weeks to May 30, as like-for-like sales fell 3.9%. It said this was due to a decrease in electrical product sales, principally driven by market declines in TVs, computers and tablets.
Total Homebase sales decreased 1.6% to GBP438 million, but like-for-like revenue was up 5.4% in the period, which Home Retail said was helped by sales growth across big ticket, seasonal and the remaining product categories, partly supported by both the trade transfer and the stock clearance sales as part of its distribution centre and store closure programme.
"The performance at Argos in the quarter was broadly in line with both our expectations and previous guidance, with sales being adversely impacted by market declines in key electrical and seasonal product categories. Homebase has made a good start to the year, successfully annualising a strong like-for-like sales performance last year," Chief Executive John Walden said in a statement.
"We continue to expect that sales will be challenging during the first half at Argos, but we look forward to a stronger second half as we progress the Transformation Plan and introduce new propositions more broadly to the market," Walden added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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