3rd Jul 2014 06:53
LONDON (Alliance News) - Argos and Homebase owner Home Retail Group PLC Thursday said its general merchandise retailer Argos and online auction site eBay Inc have extended and expanded their UK collection service tie-up.
Home Retail's Argos and eBay began trialling a UK collection service last September, which they said would last around six months and would enable shoppers to pick up products sold by about 50 eBay sellers at around 150 Argos stores throughout the UK.
Home Retail said Thursday the two companies have now entered an agreement to extend the offering of click & collect services via Argos stores, which will enable shoppers to select products from a wider range of eBay merchants and now collect from around 650 its Argos stores.
Home Retail said Thursday it does not expect the agreement to materially impact its financial performance in the current financial year.
Last month, the home and general merchandise retailer said Argos sales in the 13 weeks ended May 31 grew 4.8% to GBP868 million, with like-for-like sales up 4.9%, representing the eighth straight quarter of like-for-like sales growth for the business. It said growth was driven by online, which it said represented 42% of total Argos sales. Mobile commerce represented 21% of sales for the business. Its Argos gross margin was down 25 basis points in the quarter, compared with a 75 basis points decline in the first quarter of last year.
Big-selling items at Argos during the quarter were seasonal products such as outdoor furniture, toys and electrical products, which it said offset a decline in categories such as jewellery and homewares.
It said sales at Argos in the quarter were driven by electrical products such as video game systems and televisions ahead of the World Cup.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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