Argos takes Christmas market share
GUS celebrates double digit growth across the board
January 15 2004
Argos helped drive a successful quarter for retail group GUS, despite a slowdown in sales for the catalogue retail brand.
In the 14 weeks to January 3, Argos saw total sales growth of 10 per cent, with like-for-like sales up 3 per cent. The Homebase DIY chain grew total sales by 7 per cent, with like-for-likes up 6 per cent.
The like-for-like sales growth at Argos was down compared with seven per cent growth in the previous six months. GUS said it had been predicting a slowdown in consumer spending for some time.
GUS said Argos again outperformed the market, with 7 per cent of sales growth coming from new stores, and like-for-like growth building on strong Christmas trading last year. Consumer electronics, photography, gifts and mobile phones all performed well.
Delivery operation Argos Direct grew sales by 19 per cent and now accounts for 17 per cent of sales. Internet orders increased by nearly 50 per cent, contributing 4 per cent of sales.
The new Argos catalogue, launched this week, will offer 13,000 lines, 12 per cent more than a year ago. The Argos Extra catalogue, in 73 of the 553 Argos stores, will have 17,000 lines.
Homebase saw strong sales of kitchens, bathrooms and furniture, as well as seasonal Christmas ranges. GUS said progress is being made in strengthening the Homebase offer ahead of the Easter peak DIY trading period.
Group chief executive John Peace said: “GUS has completed another successful quarter in all its businesses with Argos, Experian and Burberry all again achieving double-digit sales growth. We remain confident about the outlook for the full year and beyond.”
Fashion retailer Burberry, in which GUS has a 66 per cent stake, reported a 12 per cent sales increase earlier this week.
