Homebase boosts HRG
11 June 2009 09:35
Home Retail Group has seen better-than-expected sales across both of its brands as "excellent weather conditions" helped Homebase to outperform Argos.
In the 13 weeks to May 30th, total sales at Argos grew by 0.9% to £937 million, whilst total sales at Homebase grew by 5.8% to £465 million. On a like-for-like basis, sales at Argos declined by 2.8% although Homebase increased 3.8%.
The success of the Homebase brand was largely due to seasonally-related categories, which accounted for approximately 40% of first quarter sales and saw low double-digit growth. The weather patterns resulted in year-on-year demand being particularly strong in March and April but down year-on-year in May.
Terry Duddy, chief executive of Home Retail Group, commented: "Argos and Homebase each enjoyed better than expected sales in the quarter and grew market share. Homebase in particular saw its performance in gardening and outdoor products benefit from the excellent weather conditions.
"At this early stage of the financial year we continue to plan cautiously, with our trading focus remaining on driving cash gross margin and achieving further cost efficiencies".
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