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Home Retail Group reports 60% drop in profits
ANNUAL profits at Milton Keynes-based retailer Home Retail Group have fallen by more than 60 per cent, according to its latest results.
The firm is “cautious” about the outlook for consumer spending in the short term but has pledged to continue its investment in maintaining its market position.
Profits were down at retailer Argos and at HRG’s Homebase DIY chain. HRG pre-tax profits fell by 60pc to £102 million, hot in particular by weaker demand for electrical goods at Argos.
Sales were down by 6pc to £5.49 billion and shareholders will not receive a final dividend this year. However, investment will continue, Argos remains the UK’s second largest internet retailer and Homebase has seen market share grow for the third year in succession.
HRG also acquired the exclusive use of the Habitat UK brandans has begun the intorduction of Habitat product into both Argos and Homebase businesses.
HRG chief executive Terry Duddy said the trading environment remained “difficult” but HRG had managed its costs and cash effectively.
He added: “While we remain cautious about the consumer outlook over the short term, we are well positioned operationally and we will continue to prioritise investment in our leading multi-channel capabilities to shape the future of shopping for our customers.”
- HRG chairman Oliver Stocken is to step down at the firm’s Annual General Meeting next month. He will be succeeded by current non-executive director John Coombe.