Gadget lovers bring some welcome respite for Argos

Argos parent Home Retail Group said better sales of consumer electronics, driven by the highly-anticipated release of the new iPad in March, helped ease like-for-like sales declines in the division to 0.2 per cent in the three months to June 2.

But the wash-out weather proved a dampener for the group’s DIY chain Homebase, with comparable sales slumping by 8.3 per cent in the quarter.

Seasonal products, which account for around 40 per cent of sales in the 341-strong business, plunged by around 15 per cent after the wet start to the summer.

Analysts had expected Argos first quarter sales to fall by around 4 per cent, following an 8.7 per cent decline in the previous six months as it struggled amid a tough consumer electronics market and dire high street trading conditions.

Home Retail said it continued to plan cautiously for the year ahead despite the improvement, given that the quarter was highly volatile due to the record wet weather and timing of holidays.

While the rainy Jubilee bank holiday weekend failed to give the group a noticeable sales lift, Home Retail chief executive Terry Duddy said there were already signs of some consumer cheer ahead of the Olympics.

“One of the things that may be coming through here is a bit of a feelgood factor as far as consumers are concerned,” he said.

Gazebos sold well over the wet Jubilee as Britons looked for cover from the rain, while Union Jack items such as deckchairs were also in demand. The dismal weather in April caused 80 per cent of the first quarter sales declines at Homebase, according to bosses, but they claimed the chain outperformed competitors in a dire market.