Home Retail Group (HRG) has reported a dip in sales at both Homebase and Argos for the 13 weeks to May 29, 2010.
Total sales declined at Homebase by 1.4% to £459m, with like-for-likes also declining by 1.4% for the period. Seasonal-related categories performed well with sales held broadly flat, compared to double-digit growth last year due to particularly favourable weather conditions in Spring 2009.
Big ticket sales were also level on last year, supported by new product ranges and installation services, said the company. Two stores closed during the period, reducing the portfolio to 347.
Total sales at Argos declined by 5.2% to £889m, with like-for-likes declining by 8.1% for the quarter. Video gaming and TV sales were particularly weak, accounting for approximately two-thirds of the overall decline in total sales. Growth continued in personal computers, white goods and toys.
Internet sales at Argos remained strong, said the report, representing 32% of sales, up 28% from last year. The
Argos application for Apple's iPhone and Touch devices, launched in late May, achieved 250,000 downloads in the first week.
Two new stores opened in the quarter, taking the portfolio to 747, and three stores were relocated.
HRG chief executive Terry Duddy said: "Economic conditions remain both challenging and uncertain, with this quarter proving difficult in terms of consumers' willingness to spend... For Homebase, this quarter represented a good outcome to its peak trading period.
"We continue to drive cash gross margin, further cost efficiencies and our increased investment plans. At this early stage of the financial year, we are targeting to achieve a similar level of profitability to last year."