Home Retail enjoys its switch to digital
ARGOS is predicting a “mobile Christmas” after the number of customers shopping on smartphones or tablet computers more than doubled over the summer.
The catalogue shopping chain now generates 43 per cent of its sales through the internet and has seen soaring demand for its click and collect service where shoppers pick up their products in store.
Mobile commerce accounted for 16 per cent of sales in the six months to the end of August after surging 124 per cent. That helped lift sales by 1.7 per cent to £ 1.7billion over the six months period as operating profi ts more than doubled to £ 7.7million.
The Argos shopping app for mobile devices has been downloaded 1.6 million times and the company is about to launch a digital version of its Christmas gift guide.
It is also carrying out trials of “digital concept stores” where traditional laminated catalogues, paper order forms and pens are all replaced by tablet computers.
Last week it launched its own- brand tablet called MyTablet and recently struck a deal with eBay that allows customers of selected eBay merchants to collect goods in 150 Argos stores.
Terry Duddy, chief executive of parent company Home Retail Group, said the fi ve- year transformation plan
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to turn Argos into a “digital retailer leader” was making “good progress”.
He added: “As we look ahead to the second half of the year we expect consumer spending will remain subdued.
“While some macroeconomic indicators are improving these have not yet led to an increase in household disposable income.
“We are making good progress and are in excellent operational shape as we approach the Christmas period.” Group results were also buoyed by the best sales fi gures in 11 years from DIY chain Homebase, up 4.4 per cent to £ 822million, driving profi ts up 11 per cent to £ 27.2million as summer sun boosted demand for seasonal products.
Home Retail Group pre- tax profi ts fell from £ 46.7million to £ 14.2million but excluding one- off gains and losses underlying profi ts rose by 40 per cent to £ 26.4million. Shares rose 7 ¾ p to 192p.