Earnings double as Argos makes progress on digital makeover

Argos’s performance and the best half-year sales figures for at least 11 years from DIY chain Homebase meant owner Home Retail Group returned to underlying profit growth.

Terry Duddy, who is to stand down as Home Retail boss by next July after 15 years at the helm, said the group was in “excellent shape” in the run-up to the key Christmas trading period.

Argos’s underlying operating profits leapt to £7.7m in the six months to August 31, up from £3.3m a year earlier, thanks to ongoing strong demand for tablet computers.

The high street chain recently followed Tesco in announcing the launch of its own-brand tablet, called MyTablet, which will be on sale for less than £100 as part of its Christmas product range.

Home Retail said the Argos digital transformation was on track, with total internet sales now accounting for 43 per cent of all Argos revenues, while smartphones and tablets represent 16 per cent of turnover after investing in apps for Apple and Android.

The group plans to scale back its print version of the catalogue as it introduces more digital versions, while it is also closing or relocating at least 75 stores over the next five years.

But it insisted the store estate will remain at the heart of its business, with around 90 per cent of all sales still involving a shop. Instead it hopes to reinvigorate the high street shops, with plans for a new concept store that will see hard-copy laminated catalogues axed in favour of tablets for customers to browse on.