Catalogue retailer Argos has revealed that it endured a challenging Christmas, with sales weaker than anticipated due to ongoing weakness in consumer confidence.
Sales fell by 8.8 per cent in the 18 weeks to December 31, while gross margin slipped by 0.5 per cent. Shares in parent firm Home Retail, which have tumbled by 57 per cent in the last year, dropped by a further 4.7 per cent after the company warned it may cut shareholders’ dividends.
“When you are a big player in a market such as computer games and that is down 20 per cent, you can’t be immune. Sales at Argos were down by £150m and two thirds of that was consumer electronics, mainly audio and computer games,” Home Retail chief executive Terry Duddy told the Mirror.
Mr Duddy added that leases on around 180 of the 750 Argos stores are due to expire this year, and although none are losing money, some may be closed unless more favourable terms can be agreed.
Yesterday, shares in supermarket giant Tesco fell sharply after the company published disappointing festive sales data.
