Gadget gains at Argos
DEMAND for gadgets such as tablets and Kindles have given sales at Argos a lift over the past three months.
Parent company Home Retail Group said same-store sales at the catalogue retailer had improved 1.4 per cent compared with a 0.2 per cent drop over the previous quarter, although such electronics products have lower profit margins.
Bad weather dampened demand at its Homebase DIY chain, where like-for-like sales were down 3.7 per cent, an improvement on the previous quarter’s 8.3 per cent reverse.
Group chief executive Terry Duddy said: “We had a good Olympics promotion, which may have had an impact on TV sales. We are looking at e-readers and tablets to be strong drivers.
“Underpinning it will be investment in internet sales, which represent 42 per cent of Argos business. The check and reserve service is working well. We are in a good position for both businesses. The sales momentum has stabilised at Argos and the next quarter is critically important.”
We had a good Olympics promotion, which may have had an impact on TV sales. We are looking at e-readers and tablets to be strong drivers
Duddy continued to play down calls from some City analysts for a major Argos store closure programme, saying it “does not make financial sense”.