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| Home Retail Group reports Argos sales rise | Home Retail Group reports Argos sales rise |
| (35 minutes later) | |
| Argos has reported a rise in underlying sales for the first time in five years, its owner Home Retail Group has said. | Argos has reported a rise in underlying sales for the first time in five years, its owner Home Retail Group has said. |
| Like-for-like sales at Argos - which strip out the impact of new store space - rose 2.1% for the year to 2 March, with total sales up to £3.93bn. | Like-for-like sales at Argos - which strip out the impact of new store space - rose 2.1% for the year to 2 March, with total sales up to £3.93bn. |
| But the group's other major business, Homebase, has continued to struggle. | But the group's other major business, Homebase, has continued to struggle. |
| As a result Home Retail's underlying pre-tax profits fell for the fifth year in a row, falling to £91.1m from £101.6m a year ago. | As a result Home Retail's underlying pre-tax profits fell for the fifth year in a row, falling to £91.1m from £101.6m a year ago. |
| Chief executive Terry Duddy described the results as "a good outcome to what has been a challenging year". | Chief executive Terry Duddy described the results as "a good outcome to what has been a challenging year". |
| The company has been working to revamp Argos by increasing sales through its website and using its "check and reserve" service. | The company has been working to revamp Argos by increasing sales through its website and using its "check and reserve" service. |
| Electronics boost | |
| Products bought through these channels now represent more than 50% of Argos's sales. | Products bought through these channels now represent more than 50% of Argos's sales. |
| Home Retail Group said Argos was also helped by sales growth in a number of categories, most notably in consumer electronics where demand for tablet computers has been strong. | Home Retail Group said Argos was also helped by sales growth in a number of categories, most notably in consumer electronics where demand for tablet computers has been strong. |
| Analysts also said that sales had been helped by the demise of competitors such as Comet in the last year. | |
| "This has led to the retailer enjoying a boost in sales of tablets, white goods and core electricals which, with electricals making up around half of Argos's sales, has helped to offset an ongoing sluggish performance in [the home division]," said retail analysts Conlumino. | |
| In contrast, sales at DIY chain Homebase have continued to fall, despite the business increasing its market share, and operating profit more than halved last year from £23m to £11m. | In contrast, sales at DIY chain Homebase have continued to fall, despite the business increasing its market share, and operating profit more than halved last year from £23m to £11m. |
| The business has struggled with unfavourable weather, a sluggish housing market and weak consumer confidence, according to analysts. | The business has struggled with unfavourable weather, a sluggish housing market and weak consumer confidence, according to analysts. |
| Home Retail Group said it expected market conditions to remain difficult over the coming year, but said it was in a strong financial position which left it "well positioned for the economic recovery". | Home Retail Group said it expected market conditions to remain difficult over the coming year, but said it was in a strong financial position which left it "well positioned for the economic recovery". |