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The end of the Argos catalogue? Home Retail Group unveils turnaround plans for troubled chain Wednesday, 24th October 2012
Photo credit: Home Retail Group
Argos is set to leave its printed catalogue-format behind as owner Home Retail Group looks to a digital focus for the general goods retailer.
Home Retail Group is also now looking at 75 Argos stores to be closed or relocated in the next five years, with new stores likely to be on shorter leases to make relocations easier.
With around 740 stores in the UK and Republic of Ireland, Argos has been hard hit during the downturn, as the company itself pointed out: “The Argos offer is biased towards less affluent customer segments”.
Now, after a six- month review of Argos, Home Retail Group told investors on Wednesday that it will look to develop a bigger range of lines, with universal appeal and a stronger online presence.
“The plan will reinvent Argos as a digital retailing leader. The transformation plan is ambitious but achievable,” said Terry Duddy, Home Retail chief executive.
Over the next three years, the company will reinvest £100 million annually into transforming the business.
The announcement was made as Home Retail Group reported back on half year sales to 1 September, in which its DIY and gardening retailer Homebase suffered a 6.2 per cent year-on-year fall in like-for-like sales.
Group revenue fell 1 per cent to £2.53 billion, while pre-tax profit fell 37 per cent to £17.9 million.
News of the changes to come saw Home Retail shares rise 9.3 per cent to 113.8p in early trading on the London Stock Exchange.