Retailer enjoys strong performance in TVs, video games and white goods

Argos tablet sales decline but electricals grows overall

Argos was hit by a further decline in tablet sales during the 13 weeks to August 30th, but strong performances elsewhere saw its electricals category grow.

"Growth was driven by increased sales of electrical products as a whole, principally as a result of strong sales performances in TVs, video gaming and white goods, partially offset by a further decline in tablets," said Argos in a statement.

"These increased sales more than offset small sales declines in furniture, homewares and jewellery."

Of course, it could have been a different story entirely had Argos managed to successfully launch its own MyTablet device as planned last year, considering the popularity of Tesco’s Hudl, which has sold around half a million units since launching last year. 

Like-for-like sales at Argos increased by 1.2 per cent during the quarter overall, while total sales rose by 1.4 per cent to £901 million.

Argos added a net 13 stores in the quarter as part of previously announced trials, including nine Argos concessions within Homebase stores and four small format stores, meaning the Argos portfolio now comprises 747 stores.

Online sales grew in line with total sales in the quarter and represented 44 per cent of total Argos sales. Within this, mobile commerce grew by 36 per cent and represented 22 per cent of total Argos sales.

John Walden, Chief Executive of Home Retail Group, commented: "The Group has had a good first half. Argos delivered its ninth consecutive quarter of positive like-for-like sales growth in the second quarter. For the first time in many years, this sales growth was supported by an improved gross margin performance.

"We remain cautiously optimistic about the broader economic environment. Key economic indicators seem to be improving, however retail spending in general has been inconsistent across both product categories and geographies, suggesting that there is not yet a sustainable, broad-based consumer recovery."

Elsewhere today, John Lewis reported a growth in electricals as part of its half-year financial report.

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