Argos and Homebase sales suffer
Homebase and Argos owner GUS has forecast a tough year ahead as both businesses experienced a drop in sales.

In first-half trading for the six months to September 30, the retail conglomerate revealed a like-for-like sales decline of 3 per cent at Argos. Homebase fared worse, with sales dropping by 4 per cent.

'Argos is planning on the assumption that like-for-like sales will remain in decline for the market as a whole for the next 12 months,' GUS said this morning.

GUS chief executive John Peace added: 'Argos continues to be affected by the challenging UK retail environment but made good progress in the half. An outstanding performance form Experian was clearly the highlight.'

Credit information company Experian experienced a surge in first-half sales of 29 per cent at constant exchange rates.

Investec retail analyst Mark Charnock said: 'A cracking performance at Experian offsets a weak sales performance at Argos. A slowdown in Burberry is a little more than anticipated.'

GUS has a 65 per cent stake in the luxury goods retailer and retail sales were up in the first half by 3 per cent. This excludes the effect of the acquisition of Burberry's Taiwan-related business.

Preparations for the planned demerger of GUS's 65 per cent stake in Burberry in December this year are still on track.

Jewellery and homewares were tough categories for Argos, while weak sales of tools, building and seasonal gardening lines let Homebase down.

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