Argos sales strong as product range grows
GUS cautious on future growth
July 23 2003
GUS has reported strong sales growth for the first quarter, but sounded a slightly cautious note on prospects for the rest of the year.
John Peace, group chief executive of the business which includes the UK-based Argos and Homebase chains, a 77 per cent stake in fashion retailer Buberry, and the Experian consumer information operation, said: “In a strong start to the year, our three main businesses have each achieved excellent sales growth. We believe that GUS is in good shape to continue to deliver growth going forward, although perhaps not at the rate of the first quarter.”
In the three months to June 30, high street catalogue chain Argos saw total sales increase by 14 per cent, with like-for-likes up 8 per cent. Sales of consumer electronics, mobile phones and toys were strong. Home delivery operation Argos Direct, grew sales by over 30 per cent compared to the first quarter last year.
The upcoming Autumn/Winter 2003 Argos catalogue will offer 12,700 lines, an increase of 1,300, or 12 per cent, on last year. The Argos Extra catalogue, with over 17,000 lines, will be extended into a total of 10 large stores and 15 smaller stores.
Over the four months to June 30, the Homebase DIY chain saw total sale increase by 5 per cent and like-for-likes up 3 per cent. Sales across the key spring trading period were boosted by garden, kitchens and bathrooms ranges, although gross margins fell slightly year-on-year.
A new range of furniture and homeware lines, along with new merchandising initiatives, will be trialled in ten Homebase stores from September.
Experian’s worldwide sales increased by 16 per cent, while, as previously reported, Burberry saw first quarter sales increase by 18 per cent.
