Both divisions of Home Retail Group, Argos and Homebase, have reported a rise in sales for the six months to the end of August.

Although pre-tax profits dipped to £14.2 million from £46.7 million, underlying profit was up 53% to £27.4 million after exceptional items.

At Argos, sales rose 2.3%, with a 5.9% rise recorded at Homebase which recorded its best half of like-for-like sales performance since acquisition in 2002 following investment in a turnaround plan.
Terry Duddy, chief executive said that the brands were making “good progress” with their investment plans and remain on track to deliver their long term objectives.

He added: “The Argos transformation is well underway, including the introduction of new smartphone and tablet apps, the extension of the 'hub & spoke' trial, the launch of a digital Christmas gift guide and the development of digital concept stores.  Homebase has completed five store refits, and plans to complete around 10 further refits in the current financial year.  These refitted stores are performing in line with our expectations.  In addition, the introduction of improved delivery options has supported multi-channel sales participation, which grew by 28%.

“As we look ahead to the second half of the year, we expect consumer spending will remain subdued and whilst some macroeconomic indicators are improving, these have not yet led to an increase in household disposable income. Overall we are making good progress and are in excellent operational shape as we approach the key Christmas trading period."