New CEO at Home Retail Group as Argos and Homebase report higher profits following festive sales rush
Home Retail Group, owner of the Argos and Homebase brands, has reported strong growth in profits on the back of a festive sales rush as shoppers piled into stores, while naming John Walden as its new CEO.
Like-for-like sales rose a respectable 3.8 per cent over the 18 weeks to 4 January whilst sister brand Homebase did even better, jumping 4.7 per cent thanks to strong demand for big ticket items.
Growth at Argos is being attributed to a rise in online purchases, which now account for 46 per cent of Argos sales, up from 42 per cent a year ago.
As a result of this growth the retailer now expects to coin full year profits of as much as £109m, the top end of analysts forecasts.
News of the sales rush coincided with a reorganisation of the Group’s leadership with the sitting head of Argos business elevated to the post of chief executive following the decision of incumbent Terry Duddy to leave.
Duddy said: “In its peak trading period Argos has continued to grow internet sales, which now represent nearly half of total Argos sales," he said.
"This growth was supported by a strong performance in mobile commerce sales which represented 20% of total Argos sales in the period. This gives further reinforcement to our plan for Argos to become a digital retail leader."
Walden will take charge on 14 March.