Argos’ fortunes hit by declining TV sales

Household goods retailer Home Retail Group (HRG) says sales at its Argos stores dipped 8.1% last quarter as the “challenging and uncertain” economy hit consumer spending.

Argos
Argos campaign

Unveiling results for the thirteen weeks to 29 May, HRG says sales at the catalogue shop dropped to £889m as sales of video games and televisions fell.

The two categories accounted for approximately two-thirds of the overall decline in total sales, the retail group says.

HRG will hope that the recently launched television advertising campaign promoting its multi-channel shopping proposition will reverse flagging sales.

Sales at DIY retailer HomeBase dipped 4.4% on a like for like basis to £459m.

HRG’s performance follows the British Retail Consortium’s warning earlier this week that despite an improved sales performance by retailers in May, up 0.8% year on year compared with a 0.2% decline in April, “there was still plenty of uncertainty”.

Terry Duddy, chief executive of Home Retail Group, says despite the first quarter dip it is “targeting to achieve a similar level of profitability to last year.”

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