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Published on September 13th, 2013 | by The GC Team

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Argos sales boost attributed to seasonal products and electricals

Home Retail Group today released its second-quarter trading statement, recording total sales at Argos up by 2.4% to £889 million. Net closed space reduced sales by 0.3% in the quarter compared to Q2 2012.

Like-for-like sales increased by 2.7%, driven by strong performances in seasonal products and continued growth in electrical, both of which more than offset declines in furniture and homewares.

Sales via the internet continued to rise. Penetration now represents 44% of total Argos sales, up from 42% for the same period last year. The company said growth was supported by strong sales in mobile commerce, which increased 133% to 17% of total sales, up from 7% last year, boosted by the ongoing development of Argos’ mobile and tablet apps.

An approximate 50 basis point gross margin decline was driven principally by the sales mix impact from growth in electricals.

Terry Duddy, Chief Executive of Home Retail Group, commented: “At this stage of the financial year we expect to deliver full year Group benchmark profit in line with current market expectations but, as always, the outcome will depend upon Argos’ peak trading period.

“Whilst we continue to expect consumer spending to remain subdued, we approach the important Christmas trading period in good operational shape.  We are on track to deliver the investment plans which will drive the long term development of both businesses [Argos and Homebase].”

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