Retail giant Home Retail Group, which own Argos and Homebase, has announced a mild rise in annual sales as it adapts to consumer demand for online shopping.
Total revenue increased 0.8% to £5.7 billion in the year to the end of February, while Argos sales rose to 1.1% to £4.1 billion. Meanwhile, Homebase sales dropped down 0.7% to £1.5 billion.
The company is planning to transform itself into a “click and collect” business which means 20,000 items will be available for same day collection.
Plans for Homebase include cutting operating stores by 27 to 296 which will diminish its estates by a quarter, whilst it has opened Argos concessions in 20 DIY outlets and 35 concessions in Habitat.
Chief executive, John Walden said: "The digital revolution continues to dramatically alter the way consumers communicate, learn, shop and are entertained. Retailing in particular is experiencing disruption and change.
"Home Retail Group believes that it has an opportunity to build a leadership position as the market becomes more digital, by developing capabilities and multi-channel customer experiences that anticipate a digital future." Adding the business was planning "conservatively", and expecting "only low levels of market-driven growth" despite low inflation, falling unemployment and signs of wage growth. However, he said confidence should improve after the election.
Argos' sales in the first half of the coming year are likely to be "challenging" Mr Walden said, though trade is expected to be better in the second half as it covers the peak Christmas trading period, when Argos will have new digital offers in place. Homebase's performance is also expected to be better in the latter part of the year.
