Home Retail's Argos sales slide 8.1%

9th Jun 2011 07:05

Continuing difficulties at the catalogue-based retailer Argos continue to plague its owner Home Retail Group, which has announced an 8.1% fall in sales at the chain to £817m in the 13 weeks to 28 May.On a like-for-like basis, excluding the impact of new openings, sales at Argos were down by 9.6% from the same period the previous year during the period."Trading conditions, particularly at Argos, have proved to be more difficult and volatile than anticipated," chief executive Terry Duddy said. "Despite this the Group has gained or held market share in its businesses," he added, suggesting that Home Retail's problems are not company-specific.Homebase, which sells furniture and other items for the home, fared much better, helped in part by the unseasonable warm weather over the period. Total sales of £458m were in line with last year, while on a like-for-like basis, they climbed by 1.6%.Home Retail said sales of consumer electronics fell much more sharply than anticipated, accounting for the majority of the reduction in sales at Argos. "While we remain cautious for the balance of the financial year, we are focused on our operational performance while continuing to invest across the businesses," said Duddy.---RG