Argos feels pressure
HOME RETAIL, owner of Argos and Homebase, will reveal this weekthat profits have dipped.
Profit before tax is expected to have dropped from £328 million last year to about £287 million this year. This is due to pressures from inflation and the weak pound.
GENERAL ELECTION 2010: GET THE LATEST NEWS AND ANALYSIS HERE...
Argos has increased its starting catalogue prices by 8 per cent in the past year in a bid to counterbalance these rising costs, according to analysts at Barclays Capital. It will have to increase them by another 2 to 3 per cent in its current financial year to offset further costs pressures.
Separately, the administrators of Adams has failed to find a buyer for the failed childrenswear retailer, meaning its remaining stores are likely to close.