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| Argos to shut or relocate 75 stores, Home Retail Group says | Argos to shut or relocate 75 stores, Home Retail Group says |
| (35 minutes later) | |
| Home Retail Group, which owns Argos, is planning to close or relocate at least 75 of the catalogue retailer's stores over the next five years. | Home Retail Group, which owns Argos, is planning to close or relocate at least 75 of the catalogue retailer's stores over the next five years. |
| It is part of the company's plans to change Argos into a digitally-led retailer instead of being predominantly catalogue-led. | It is part of the company's plans to change Argos into a digitally-led retailer instead of being predominantly catalogue-led. |
| It plans to move its stores onto shorter leases to make relocation easier. | |
| Argos has more than 700 stores in the UK and Republic of Ireland. | Argos has more than 700 stores in the UK and Republic of Ireland. |
| Home Retail Group summarised the key challenges facing Argos, including: "The Argos offer is biased towards less affluent customer segments". | Home Retail Group summarised the key challenges facing Argos, including: "The Argos offer is biased towards less affluent customer segments". |
| Following a six-month review of the Argos business, it has decided to invest in developing a bigger range with universal appeal and a stronger online presence. | Following a six-month review of the Argos business, it has decided to invest in developing a bigger range with universal appeal and a stronger online presence. |
| Market 'fragile' | Market 'fragile' |
| The announcement came with the release of six month results. | The announcement came with the release of six month results. |
| Pre-tax profits for the six months to the start of September came in at £51.1m, up 74% from the comparable period last year. | Pre-tax profits for the six months to the start of September came in at £51.1m, up 74% from the comparable period last year. |
| But that figure was flattered by an exceptional £35m gain from the retailer reducing its future liabilities by closing its final salary pension scheme. Without that gain, profits would have fallen 18%. | But that figure was flattered by an exceptional £35m gain from the retailer reducing its future liabilities by closing its final salary pension scheme. Without that gain, profits would have fallen 18%. |
| Home Retail Group also owns Homebase and Habitat. It bought the rights to the Habitat brand, as well as three of its stores, in June 2011. | Home Retail Group also owns Homebase and Habitat. It bought the rights to the Habitat brand, as well as three of its stores, in June 2011. |
| "Market conditions remain fragile and hence we will continue to plan cautiously, however we are in good operational shape as we approach our peak trading period," said chief executive Terry Duddy. | "Market conditions remain fragile and hence we will continue to plan cautiously, however we are in good operational shape as we approach our peak trading period," said chief executive Terry Duddy. |