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Sales lift for Home Retail from rivals' departure
Robert Lea12.03.09
The demise of Woolworths and MFI is keeping the wolf from the door at Argos and Homebase.
Home Retail Group said today it expects to match City profits targets of £319 million for the year to the end of February after its Argos business recorded a better-than-expected post-Christmas period.
"Like-for like sales at Argos in the last eight weeks of our financial year were much better than expected, down just 1.6%, having been falling 7% in the previous quarter," said chief executive Terry Duddy.
"January was very good and we saw good sales of video gaming and traditional toys - something in which we definitely benefited from the closure of Woolworths."
While its Homebase figures are far worse - a fall of 10.2% in the most recent trading - the story is similar.
"Garden maintenance and horticulture has not been good but that has simply been a factor of the weather," said Duddy. "Even the most hardened allotmentist has not been buying. But kitchens sales have been going well, and we have definitely been picking up market share after the demise of MFI."
Home Retail will take a further £100 million of store writedowns and onerous lease provisions on top of the £161 million already signalled.
