Stores warn of hard times ahead

THREE leading retailers yesterday reported falling sales and warned of tough times ahead as cash-strapped consumers rein in their spending.

The owner of Argos said conditions on the high street were worse than it expected after it posted a further sharp slump in sales.

Home Retail Group, which also owns Homebase, highlighted a significant decline in the consumer electronics market as like-for-like sales at Argos dived by 9.6 per cent in the 13 weeks to May 28. Total sales were down 8.1 per cent at £817m, it added.

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Chief executive Terry Duddy said: “Trading conditions, particularly at Argos, have proved to be more difficult and volatile than anticipated.”

Fashion retailer JD Sports also reported a deterioration in same-store sales but insisted its weak performance was partly down to tough comparisons a year earlier.

The group said like-for-like sales for the first 18 weeks of the financial year declined 2.8 per cent, compared to a 1.2 per cent decline in the first eight weeks.

The retailer warned it was harder to interpret underlying trends as the period coincides with the time running up to last year’s World Cup – but maintained its cautious outlook as the squeeze on consumer spending continues.

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Bike and car parts retailer Halfords reported a 7.7 per cent rise in pre-tax profits to £118.1m in the year to April 1 but a 5.5 per cent fall in like-for-like sales.

However, the chain reported some good news, with hot spring weather lifting recent sales. Like-for-like revenues were up 0.8 per cent in the nine weeks to June 3, driven by an 11.1 per cent rise in leisure items, such as those in its revamped cycling range.

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