Homebase has seen sales dip 10.2% in the 12 months to February 28, while sales at sister company Argos dipped 4.8%.
The parent company Home Retail Group published its end of year trading statement this morning for the 12 months to February 28 and while the figures for Homebase show a significant decline in sales, the news may not all be bad.

The report shows that sales for the full year, the second half of the year and the last eight weeks of the financial period are all declined 10.2%, suggesting that although things are tough, they're not getting any worse.

Gross margin, however, has worsened throughout the year, with an approximate 0.25% dip for the year, but a 1.75% fall for the last eight weeks of the period. This, said the company, "reflected another period of strong promotional and clearance activity" as well as "cost pressures".

Surprisingly, the company has reported strong growth in kitchen sales, despite lower levels of consumer confidence - perhaps linked to the decline of MFI and the extra business that may have brought in.

Garden and horticulture had a tough time, in what the company described as "particularly difficult trading conditions".

Homebase recently announced 300 job cuts and the closure of its consumer 'Ideas' magazine. The year also saw Homebase receive a £382m goodwill write down.