Home Retail faces digital transformation

ARGOS owner Home Retail Group has warned of a “challenging” few months ahead as the retailer battles to transform itself for the digital age.

Boss John Walden admitted customers had experienced delays and disruption while its technology struggled to cope with “extreme” online demand.

Like-for-like sales at Argos rose 0.6 per cent in the year to the end of February, compared to 3.3 per cent growth the year before.

DIY chain Homebase, also part of Home Retail Group, saw its growth slow too, from 5.9 per cent to 2.3 per cent.

It comes after the wider group surprised the City last month as it posted a sales decline at both businesses at the start of this year.

Group chief executive Walden admitted that the five-year plan to transform Argos, now two years in, had “not unfolded exactly as we originally envisioned”.