Like-for-likes flat at Argos
GUS hails ‘successful’ year overall
Argos has seen its sales growth slow down sharply over recent months as sales conditions toughen on the UK high street.
In a year end trading statement, Argos owner GUS said Argos had seen total sales increase by 5 per cent in the six months to March 31, driven by new store openings, with like-for like sales flat. The Homebase DIY operations saw total sales up 6 per cent over the five months to the end of February, with like-for-likes up 2 per cent.
Argos, whch has been an engine of growth for GUS over recent years saw sales growth of 8 per cent across the full year, and 3 per cent on a like-for-like basis. GUS opened 36 new stores during the year, bringing the total to 592.
As retail demand weakened across the second half, supply chain gains allowed Argos to reduce prices further. Best performers were consumer electronics, digital cameras and leisure, while sales of furniture and white goods slowed. Home delivery operation Argos Direct grew sales by 10 per cent in the second half and accounted for 20 per cent of Argos’ revenue.
[img r]homebaseswindon.jpg[/img]Homebase opened nine stores across the year, bringing the total to 287 stores. Sales grew by 6 per cent in total, and 3 per cent on a like-for-like basis.
Total sales in the four major product areas showed growth, with strong performances from new ranges in tiling, decorative fittings and lighting.
Fashion operation Burberry, in which GUS has a 66 per cent stake, reported a 6 per cent sales increase at constant exchange rates this week. Business services group Experian saw a 20 per cent increase across the half at constant rates.
John Peace, GUS chief executive, said: “Despite challenges in some of our markets, GUS has completed another successful year.
“Looking forward, while the UK retail environment has become more difficult, we remain confident that the strong competitive positions and clear strategies for growth in all our main businesses will enable GUS to deliver further progress in the new financial year.”
