Outcomes confirmed that gross sales of toys, homeware and different non-food items from Argos declined 16% year-over-year.
Though Sainsbury’s raised its full-year revenue steerage earlier than tax to “at the very least” £720m, Argos noticed a pointy drop in toys and tech gross sales, above £660m resulting from meals and beverage gross sales .
Regardless of declining gross sales through the peak interval of Christmas buying and selling, the retailer delivered robust Christmas outcomes and rising market share.
In a press release, the corporate stated value inflation was offset by financial savings pushed by the closure of 420 Argos branches. This helped consolidate income together with better-than-expected grocery gross sales. The corporate stated: “Our expectations for full-year income are forward of earlier steerage, with investments in buyer proposition and better working value inflation offset by structural value financial savings and stronger than anticipated grocery volumes, pushed by in-home grocery consumption.” Pushed by development.
Nevertheless, total related gross sales, excluding the impression of gas and new retailer openings, fell by 4.5% within the three months to January 8, and basic merchandise, together with homewares, toys and different Argos items, fell by 16. % Yr after 12 months.
The group stated it was all the way down to the corporate’s choice to supply fewer reductions, in addition to a comparability with “robust efficiency” through the lockdown final Christmas.
The retailer revealed that international provide chain points have additionally affected the provision of some merchandise.
Argos gross sales have been down greater than 9% within the company-wide third quarter in comparison with the identical interval final 12 months, whereas the grocery store chain’s basic merchandise efficiency was down 20%.
Nevertheless, CEO Simon Roberts remained upbeat, commenting: “I am actually proud of how we delivered to clients this Christmas. The background was difficult and our groups labored onerous all year long to verify we had the merchandise we needed.” Be what everybody needed.”