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.
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.”