Close this search box.

Argos upbeat on progress towards leadership in digital retailing

This is an archived article - we have removed images and other assets but have left the text unchanged for your reference

Argos’ parent company was this week in upbeat mood on its plan to reinvent Argos as a leader in digital retailing.

Home Retail Group, in an end-of-year trading update, said the company expected to turn in a benchmark pre-tax profit of around £90m after “a challenging year”.

Terry Duddy, chief executive of Home Retail Group, said: “Against a backdrop of subdued consumer spending for the new financial year, we will continue to invest and are focused on delivery of the transformation plan to reinvent Argos as a digital retail leader and the Homebase proposition.”

In the year to March 2, Argos turned in total sales up by 1.5% at £3.9bn, while like-for-like sales were up by 2.1%.

In the eight weeks to the same date, total sales were 4.3% up at £501m, while like-for-likes were 5.2% ahead. The growth was put down improved sales in consumer electronics, notably tablets.

Total internet sales grew ahead of the overall sales growth: some 43% of Argos’ total sales involved the internet, up from 40% a year ago. Mobile commerce sales were up by 117% on last year.

Meanwhile, Argos also continues to adjust its store portfolio in the light of the online effect. It has closed 11 stores over the full-year, taking its total estate to 737.

But while Argos’ sales were up, Homebase reported a decline. The DIY-to-home-and-garden-equipment retailer saw full-year total sales fall by 5.2% to £1.4bn, while like-for-likes were down by 4.9%.

In the eight weeks to March 2, total sales fell by 2.8% to £191m, and like-for-likes were down by 1.5%.

Peter Saville, partner at advisory and restructuring firm Zolfo Cooper said Argos was forging a path to multichannel success.

“Whilst the business is clearly doing well in transforming itself from a catalogue merchant to a strong online player, a click-and-collect model probably doesn’t require such a large store portfolio,” he said. “Key to Argos’ medium-term success will be ensuring that its cost base and infrastructure is shaped appropriately to meet the changing demands of the consumer.”

Read More

Register for Newsletter

Group 4 Copy 3Created with Sketch.

Receive 3 newsletters per week

Group 3Created with Sketch.

Gain access to all Top500 research

Group 4Created with Sketch.

Personalise your experience on