Tough retail market causes sales at Argos to wobble |
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Wed, 20 Jul 2005 13:05
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Leading Retailer, GUS declared that its high street catalogue retailer, Argos had recorded a decline in sales along with Homebase, GUS’s do-it yourself business. GUS said that the retail market remained ‘challenging’ and a considerable trend had been noticed in customers wherein they were refraining to purchase garden furniture or jewellery.
Argos posted a decrease of 4% in its like-for-like sales in the quarter ending June 30, while Homebase saw a 2% fall in its sales. However, GUS has something to cheer about too. Its financial services unit, Experian reported a sturdy performance during the quarter, thereby counterbalancing the dismal results of the company’s retail stores.
Experian’s sales at constant exchange rates rose 27% over the first quarter, carrying on its three-year trend of recording a two-digit growth in sales. About 13% of organic growth and 14% of earnings through acquisitions contributed towards Experian’s sales growth.
GUS commented on the performance of the retail stores and said, “In the first quarter of the financial year, the non-food, non-clothing market in the UK continued to decline on a like-for-like basis. Argos and Homebase cannot be immune from this downturn in demand or from the higher cost inflation that retailers are facing. Compared to the same period last year, there were good performances from consumer electronics, white goods and toys, while house wares, garden ranges and jewellery were difficult.”
Meanwhile, GUS also mentioned its plan to split the 66% stake in Burberry, its luxury brand, in December after the interim results of Burberry were out. It added that a demerger of Experian would also take place, but did not specify the date.
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