Home Retail Group reports 19% profit fall

Homebase%20120x120Home Retail Group, owner of retailers Argos and Homebase, has slumped to a first-half loss of £437m and reported a 19% fall in profit. The company blames the poor summer and the economic downturn.

In its half-year results to August 30, Home Retail Group has reported that like-for-like sales dropped by more than 10% at Homebase and by 3% at Argos. The company adds that sales have fallen by “high single digits” since the end of August and predicts the situation is unlikely to improve “for some time”.

It adds that an exceptional charge of £549.9m related to write-downs has affected its figures. The first-half loss compares with a profit of £169.3m the same period last year.

The group says shoppers are buying cheaper electronic goods at Argos, cutting profit margins and that DIY and garden retailer Homebase has been hit by the poor summer and the slump in the housing market.

Capital expenditure will be cut in the current year to £175m from £225m. New store openings for Homebase will be reduced from between a planned 10 to 15 to between five and 10, while Argos’ new openings will be reduced from 30 to 25.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here