Internet sales boost results for Argos as Home Retail reports positive results
Argos and Homebase parent company Home Retail has today announce a positive like-for-like sales performance, despite highlighting limited customer spending, owing to lessened disposable incomes. Profit before tax for the period was £14.2m in the 26 weeks to 31 August. (Release)
Argos did particularly well when it came to sales via smart devices – internet penetration went up to 43 per cent of the catalogue retailer's sales, with mobile shopping growing 124 per cent,16 per cent of total sales.
Like-for-like sales at Homebase were up 5.9 per cent and 2.3 per cent at Argos. Overall, sales saw three per cent growth to £2,596m.
Argos saw the launch of both new and improved smartphone and tablet apps and eight million customer registrations in the period.
Homebase launched its next day/named delivery service and saw multichannel sales grow by 28 per cent in the period. Argos' "hub & spoke" trial – designed to allow customers to order and collect on the same day – has been expanded to about 50 stores.
Teddy Duddy, chief executive of Home Retail said: "as we look ahead to the second half of the year, we expect consumer spending will remain subdued, and whilst some macroeconomic indicators are improving, these have not yet led to an increase in household disposable income. Overall we are making good progress and are in excellent operational shape as we approach the key Christmas trading period."