Argos enjoys growth in electricals as total sales rise - PC Retail

Argos enjoys growth in electricals as total sales rise

Sales increased 3.3 per cent during the retailer's latest financial year
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Argos says electrical products continued to 'deliver a positive sales performance' during the final eight-week trading period for its financial year ending March 1st 2014.

"Electrical products continued to deliver a positive sales performance, principally as a result of sales growth in video gaming, TVs, small domestic appliances and white goods," said Argos in a statement.

"Sales across the remaining product categories were broadly flat year on year with the exception of jewellery which experienced a small decline."

Like-for-like sales at Argos grew by 5.2 per cent to £526 million during the eight weeks, and 3.3 per cent for the year overall. 

Internet sales for the full-year represented 44 per cent of total Argos sales, up from 42 per cent for the same period the year prior. Mobile commerce sales grew by 89 per cent to represent 18 per cent of total Argos sales.

Argos reported a net reduction of three stores during the year, bringing its total store count down to 734.

Terry Duddy, Chief Executive of Argos parent firm Home Retail Group, commented: "The positive sales performance in the last few weeks of our financial year concludes a good year for both Argos and Homebase, with both businesses having delivered like-for-like sales growth throughout the year.

"As a result of this recent trading performance, we now expect Group benchmark profit before tax to be slightly ahead of the top end of the current range of market expectations of £107 million to £111 million. The cash outflow for the year will also be slightly better than previous guidance, resulting in a closing net cash position of around £330 million.

"We have made good progress with the investment plans in both businesses during the current financial year and we have a clear agenda for growth. However, although there are signs that economic conditions may be beginning to improve, we will continue to plan for a subdued consumer environment.

"It has been a very exciting time leading the Group over the last 15 years. Digital technology, together with changes in consumer behaviour, have fundamentally changed the face of retailing in recent times, and both Argos and Homebase have well defined plans and strong management teams in place to be leaders in both digital trends and changes in the way people shop. I would like to thank our 50,000 colleagues for their huge commitment and support."

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