Argos and Homebase suffer sales falls
Argos and Homebase have seen sales fall in the past quarter, although profits were helped by favourable currency and shipping costs.
As anticipated with its store closure programme, Homebase saw sales drop, by 2.8% to £378m in the quarter to 29 August. Like for like sales rose by 5.9% with ‘growth broadly across all product categories, but particularly in big ticket products.’ The chain said the increase was ‘partially supported’ by closing down sales but margins had suffered as customers bought reduced big ticket items such as kitchens.
At Argos sales dropped 0.4% to £897m, thanks to lower TV, tablet and white goods sales. Like for like sales fell 2.8%. Internet sales for the quarter represented 46% of total Argos sales, up from 44%. Within this, mobile commerce sales grew by 11% to represent 25% of total Argos sales, up from 22% in the prior year.