Argos sees sales increase following new mobile commerce strategy introduction
Home Retail Group announced a growth in sales for Argos after the introduction of a new online model, although it saw sales for Homebase decline over the same period.
The company saw Argos total sales rise by 1.6 per cent in the 18 period ending 5 January, reaching £1,744m, with chief executive of the Group Terry Duddy revealing that online sales now represented 42 per cent of the retailer’s total sales, with a growth in mobile sales of 125 per cent through their recently launched smartphone and tablet apps.
However, sister retailer Homebase saw its total sales over the same period by 4.5 per cent, reaching £453 million.
"As a result of good operational management and cash generation over the peak trading period, we now expect Group benchmark profit before tax for this financial year to be about £10 million ahead of the current market consensus of £73 million and the year-end cash balance to be in excess of £300 million,” predicted Duddy. “Whilst we anticipate consumer confidence will remain subdued in the coming year, we are focused on delivering the transformation plan to reinvent Argos as a digital retail leader and the ongoing development of the Homebase proposition."
Argos released its free-to-download Android app last September after its iOS app which was released in March.