Sunday, November 19, 2017

Argos posts confident profits ahead of Sainsbury’s takeover

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In the midst of the Sainsbury’s takeover, Home Retail Group has announced that first quarter like-for-likes grew by 0.1% at Argos.  

Total sales rose by 2.6% to £868m in the 12 weeks to 28 May. New sites added 2.5%, mainly due to new store openings in the previous financial year.

Ecommerce sales increased by 16% and represented a significant 49%  of total Argos sales, up  from 44%  year-on-year. Further, mobile sales went up  by 17% which accounted for 29% of total Argos revenue.

Sales of electrical and non-electrical goods continued to rise. An increase in the expenditure of TVs, mobiles, computers and tablets was particularly due to a decline in sales of white goods.   

“I am pleased with our performance in the first quarter. Argos delivered good total sales growth together with positive like-for-like growth, representing its strongest sales growth performance in eight quarters. This was achieved against the challenging backdrop of constrained seasonal product sales due to poor weather, on top of a deflationary pricing environment” said John Walden, Chief Executive of Home Retail Group.

“Given the natural distraction that a transaction such as this can be for our colleagues, on top of the recent sale of Homebase, I am particularly pleased with our performance in the quarter.”

Walden added that Sainsbury’s’ acquisition of Home Retail Group is on track to complete in the third quarter of the calendar year.