Home Retail Group which owns Argos has reported that sales have been hit by the lack of demand for electrical goods such as computers, tablets and TVs.
Figures show that in the three months to the end of May, like-for-like sales dropped 3.9% to £846 million ($1.3 billion, EU1.16 billion) compared to the previous year.
Home Retail Group chief John Walden said: "The performance at Argos in the quarter was broadly in line with both our expectations and previous guidance, with sales being adversely impacted by market declines in key electrical and seasonal product categories."
He added: "We continue to expect that sales will be challenging during the first half [of the financial year] at Argos, but we look forward to a stronger second half.”
Homebase, which is also part of the Home Retail Group, had a good start to the year with sales rising 5.4% due to stock clearance.
