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You can find the current article at its original source at http://www.theguardian.com/business/2016/jan/14/argos-sales-threaten-home-retail-profits-homebase-sainsburys
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| Argos sales threaten Home Retail profits | Argos sales threaten Home Retail profits |
| (35 minutes later) | |
| Home Retail Group, target of a £1bn bid approach from Sainsbury’s, has warned that poor sales at its Argos chain would hurt group profits. | |
| Argos posted a 2.2% fall in like-for-like sales in the 18 weeks to 2 January, worse than analysts had expected. Sales at its stores slumped 13% in December, with shopping centre and high street stores badly hit, which was only partly offset by 10% growth in digital sales. | Argos posted a 2.2% fall in like-for-like sales in the 18 weeks to 2 January, worse than analysts had expected. Sales at its stores slumped 13% in December, with shopping centre and high street stores badly hit, which was only partly offset by 10% growth in digital sales. |
| Related: Thousands of Argos jobs at risk if Sainsbury's deal is struck | Related: Thousands of Argos jobs at risk if Sainsbury's deal is struck |
| Home Retail’s other chain, Homebase, enjoyed 5% growth, boosted by kitchen and bathroom products. The company confirmed it is in advanced discussions to sell the DIY chain to Australia’s Wesfarmers for £340m. | Home Retail’s other chain, Homebase, enjoyed 5% growth, boosted by kitchen and bathroom products. The company confirmed it is in advanced discussions to sell the DIY chain to Australia’s Wesfarmers for £340m. |
| As a result of Argos’ poor performance, the firm said full-year profits will be at the bottom end of City forecasts, which range from £92m to £118m. | As a result of Argos’ poor performance, the firm said full-year profits will be at the bottom end of City forecasts, which range from £92m to £118m. |
| Consultants Retail Remedy tweeted: “Re-modelled estate, footfall from Sainsburys, more digital ... there’s still a case [for a takeover by the supermarket group].” | Consultants Retail Remedy tweeted: “Re-modelled estate, footfall from Sainsburys, more digital ... there’s still a case [for a takeover by the supermarket group].” |
| Chief executive John Walden described it as a “very eventful period for the group”. | Chief executive John Walden described it as a “very eventful period for the group”. |
| “Against this backdrop, whilst Argos trading performance was mixed, I am pleased that we made material steps forward in the Argos transformation plan,” he said. | “Against this backdrop, whilst Argos trading performance was mixed, I am pleased that we made material steps forward in the Argos transformation plan,” he said. |
| Total sales at Argos increased 0.9%. Walden said trading was volatile, highlighting a surge in sales during Black Friday week and a slowdown in the weeks before and after, growth in digital transactions, reduced store footfall particularly on the high streets, and further price cuts. | Total sales at Argos increased 0.9%. Walden said trading was volatile, highlighting a surge in sales during Black Friday week and a slowdown in the weeks before and after, growth in digital transactions, reduced store footfall particularly on the high streets, and further price cuts. |