Argos expanding product offer
GUS growth across the board
Argos outperforms across the board
High street catalogue store Argos is further expanding its product range as parent company GUS reports a healthy start to its new financial year.
In the three months to June 30 Argos saw total sales growth of 15 per cent, with like-for-like growth of 9 per cent. GUS said that Argos again outperformed its market, with photography, white goods and leisure categories performing particularly well.
Argos Direct, the home delivery operation, grew sales by 30 per cent and accounted for 25 per cent of Argos sales, compared to 23 per cent in the first quarter last year.
The autumn/winter 2004 catalogue, launched this week, will again be expanded. The main store catalogue will have 13,200 lines, up from 12,700 last year, while Argos Extra catalogue, which will have 17,000 lines, will be available in about 150 stores out of the Argos total of 561, compared with 75 stores at present.
[img r]homebaseswindon.jpg[/img]DIY chain Homebase saw total sales grow by 5 per cent in the four months to June 30, with like-for-likes up 3 per cent. GUS said the 281-store chain, acquired at the end of 2002 “has made good progress in its initiatives to improve customer service, ease of shopping and its home enhancement offer. These are starting to improve the customers’ shopping experience and drive growth.”
All major Homebase product areas showed year-on-year growth, with strong performances from kitchens, bathrooms, tiling and air-conditioning products.
Burberry, the fashion business in which GUS has a 66 per cent stake, earlier this week reported retail sales up by 15 per cent at constant exchange rates. Business information group Experian also saw 15 per cent sales growth at constant exchange rates.
GUS said plans for a partial IPO of its South African business Lewis Stores are still on track for this year, subject to market conditions.
GUS group chief executive John Peace said: “With strong sales momentum in all of our businesses, GUS has made a good start to the year. We remain confident of making continued progress in the rest of the year, although we remain conscious of the challenges we face in some of our markets.”
