Spring sales droop at Home Retail Group

Home Retail Group, which runs Homebase and Argos, has seen sales fall in the 13 weeks from 28 February to 29 May 2010.

Argos sales fell 8.1 per cent to £889m, while Homebase sales fell 1.4 per cent to £459m.

Chief executive Terry Duddy said:

"Economic conditions remain both challenging and uncertain, with this quarter proving difficult in terms of consumers' willingness to spend. The comparable period last year also contained some strong sales growth and share gains in certain product categories, particularly in consumer electronics at Argos. For Homebase, this quarter represented a
good outcome to its peak trading period.

"We continue to drive cash gross margin, further cost efficiencies and our increased
investment plans. At this early stage of the financial year, we are targeting to achieve a
similar level of profitability to last year."

He added that total sales at Homebase declined by 1.4% to £459m. Net space contribution was flat in this period; two stores closed in the quarter, reducing the portfolio to 347. It is anticipated that the space contribution will be marginally negative over the next twelve months.

Like-for-like sales declined by 1.4% in the quarter. Seasonal-related categories performed
well, with sales held broadly flat in the period; this compared to double-digit growth last year
when Spring 2009 weather conditions were particularly favourable. ‘Big ticket' was also level
on last year, supported by new product ranges and installation services. Sales for the
remaining categories were marginally negative.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

What new vegetables will gardeners be growing in 2018?

What new vegetables will gardeners be growing in 2018?

Next year is Fleuroselect year of the chilli pepper and Thompson & Morgan and Mr Fothergill's have ranges around the hot vegetable, with a new way of promoting sales.

Garden centre building: what's going up?

Garden centre building: what's going up?

After a lull in new builds, 2018 could see a slight resurgence in garden centres being erected.

Retail seed: crowded market for 2018

Retail seed: crowded market for 2018

Thompson & Morgan is refocusing on the garden centre seed market, hoping to win back business from Mr Fothergill's, which has expanded during T&M's long sale process.

Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs
More Horticulture Jobs

Horticulture Week Top 100 GARDEN CENTRES

Our exclusive ranking of garden centre performance by annual turnover. 

Garden Centre Prices

Peter Seabrook

Inspiration and insight from travels around the horticultural world

Read more Peter Seabrook articles

Neville Stein

Business advice from Neville Stein, MD of business consultancy Ovation

Read latest articles