Home Retail Group has insisted it is poised for an upturn in profits, despite ongoing weakness in UK consumer confidence and spending.
In its latest trading report, the firm – which owns brands including Argos and Homebase – announced a half-year profit of £3.4m, with shoppers spending less on high-end electronic goods. Bottom-line pre-tax profits, meanwhile, were down at £28m.
However, Home Retail Group revealed plans to launch Argos in China as part of a multichannel joint venture and signalled its intention to proceed with store refurbishments and the launch of the new Argos TV shopping channel.
“Homebase delivered another robust performance in its peak trading period. Core customers at Argos have continued to be under greater pressure,” said chief executive Terry Duddy. “We are well positioned operationally and we will continue to shape the future of shopping for our customers.”
Last week, supermarket chain Asda announced that it is to invest £10m in cutting the cost of children’s toys in the build-up to Christmas, in an effort to entice struggling customers back into its stores.
