Home Retail's Argos sales improve at year-end

Home Retail Group reported an improvement in sales at its Argos stores in the final eight-week trading period for the financial year ended 27 February.

The FTSE 250 company, which recently sold Homebase and is currently the subject of a bidding war between South African retailer Steinhoff International and UK supermarket chain Sainsbury’s, said like-for-like sales at Argos fell 1.1% on the year.

This compared to a 2% decline in the second half and a 2.6% drop for the full year. Total Argos sales were up 1.9% compared with a 1.1% rise in the second half.

At Homebase – the DIY unit recently sold to Australia’s Westfarmers – LFL sales rose 3.3% in the period compared with a 4.5% increase in the second half and 5.2% for the year.

Chief executive John Walden said: “I am pleased with the continued improvement in Argos' sales performance in the period, together with the continued progress in the Argos Transformation Plan to become a digital retail leader.

“In October we introduced FastTrack - market-leading propositions for same-day home delivery and store collection. Since its introduction, customer awareness of FastTrack has continued to grow and its operations are improving, with both on-time delivery rates and customer satisfaction now at leading levels.”

The company expects benchmark pre-tax profit for the financial year ended 27 February to be in line with current market consensus of £93m. It also said the group's year-end cash balance will be significantly stronger than previously anticipated at around £625m.