Argos catalogue could be history

THE TRANSITION by Argos to become a digitalled retailer is paying early dividends after the firm more than doubled halfyear earnings.

Argos’ performance and the best half-year sales figures for at least 11 years from DIY chain Homebase meant owner Home Retail Group (HRG) returned to underlying profit growth.

Terry Duddy, who is to stand down as chief executive of HRG next July after 15 years at the helm, said the group was in “excellent shape” in the run-up to the key Christmas trading period.

Argos’underlying operating profits leapt to £7.7 million in the six months to August 31, up from £3.3 million a year earlier thanks to ongoing strong demand for tablet computers.

The high street chain recently followed Tesco in announcing the launch of its own-brand tablet.

Home Retail said the Argos digital transformation was on track, with total internet sales now accounting for 43% of all revenues, while smartphones and tablets represent 16% of turnover after investing in apps for Apple and Android.

The group is scaling back the print version of its iconic catalogue as it introduces more digital content.

It also plans to reinvigorate its high street outlets with a new concept store about to be trialled which ditches the traditional laminated Argos catalogues in favour of tablets for customers to browse on.

It is also closing or relocating at least 75 stores over the next five years but has insisted its shop estate remains at the heart of its business.