Argos slump hits home Retail Group
07:00
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Declining demand for "big ticket" furniture, video games and televisions have contributed to a decline of 14 million from ￡ 103 million pounds in six months to 28 August pre-tax profits.
Sales like-for-like Argos fell 6 5pc, have 0 8pc HomeBase.Total sales dropped 3pc ￡ 2, 720 m.
Home Retail Group was particularly affected by the slowdown with clientele mainly low income which is not as large falls mortgage rates than those of higher incomes.
Stated unit volumes at Argos had actually increased, with "particular success in the areas of small tickets such as toys and follow the".Cependant, he described a weakness in large purchases furniture and parts of the video as "pronounced", despite the positive effect of the game World Cup technology market.
HomeBase has suffered a decline in sales, with enhanced range of garden furniture and barbecues cited as reasons for the slow decline more slowly.
Shares declined nearly 2pc in trade in the beginning, 216 p.
Executive Director of the Terry Duddy, Home Retail Group, said m ￡ 39 cost reduction has contributed to a decline in profits slower than otherwise would have been reached and remained positive on the busy holiday season.
He said: "we are about to enter our trading more busy period and while we are carefully, we do so from a position of strength, operational and financial.
Multi-channel sales group continues to represented cro?tre.Internet 32pc of sales of the Argos, 28pc maximum level year précédente.IPhone Argos, launched in May 2010, app has been downloaded more than 850 000 times and now represents sales of 1pc.
Sales via the Internet at HomeBase, including its new service of "reserve & collect" increased by 40pc in the first half of the fiscal year and now accounts for 4pc sales.
Home Retail Group is continuing now with a number of store cleaning, with plans to complete the rehabilitation of more than 100 Argos stores in time for Christmas trading period more busy group.
