Following several consecutive reports of depressed sales, Home Retail Group's Homebase has reported sales growth for the 13 weeks to June 1, 2013, albeit marginal and "behind expectations".
Like-for-likes increased by 1.4% at the retailer, with a total sales change of 0.2% and a net space sales change of -1.2%. Total sales for the quarter stood at £422m, 40% of which were seasonal products "adversely impacted by the volatile weather conditions". This partially offset the like-for-like increase, which was driven by the performance in big ticket products.

Gross margin was down 200 bps, driven "by a return to a more normal level of promotional sales versus the unusually low level in the first quarter of the previous financial year," according to HRG bosses.

Argos, meanwhile, saw sales increase 1.9% LfL to £828m, with a total sales increase of 1.2%. "Consumer electronics maintained positive sales driven by growth in tablets and TVs, which together with continued growth in both white good s and core electrical more than offset the market driven declines in the video gaming and audio categories as well as the weaker performance in seasonal products," reported the retailer.

Internet sales grew to now make up 42% of Argos' total sales, up from 41% this time last year. This growth was supported by further strength in the mobile commerce channel in which sales increased by 114%.

HRG chief executive Terry Duddy said: "Argos has delivered a good start to the year driven by continued success in consumer electronics and electrical, supported by growing internet and mobile commerce sales. Overall its trading has been consistent with our expectations.

"Homebase produced a positive like-for-like sales performance, however seasonal sales were adversely impacted by the volatile weather and, as a result, its performance for the quarter was slightly behind our expectations.

"Whilst we expect consumer spending to remained subdued, we are on track with delivering our investment plans to drive the long term development of both Argos and Homebase."