Argos’ mobile channel is going strong, with sales made via mobile devices representing 20 percent of total sales in the last quarter.
In an interim management statement for the 18 weeks from 1 September 2013 to 4 January 2014, Argos’ owner, Home Retail Group’s CEO said that the business was on its way to becoming a successful digital retailer.
CEO Terry Duddy said: “In its peak trading period Argos has continued to grow internet sales, which now represent nearly half of total Argos sales. This growth was supported by a strong performance in mobile commerce sales which represented 20 percent of total Argos sales in the period. This gives further reinforcement to our plan for Argos to become a digital retail leader.”
Argos reported total sales growing 3.6 percent to £1.8 billion, 46 percent of which were online. This was an increase from 42 percent for the same period last year, aided by Check and Reserve, but the most impressive growth was in mobile, where sales grew 75 percent year-on-year to represent 20 percent of total sales. Year-on-year, mobile sales represented just 12 percent of total sales.
Home Retail Group, which also owns Homebase, said that the strong performance over the last quarter made for a positive profit outlook.
“As a result of the trading performance, we now expect to achieve full year group benchmark profits towards the top end of the current range of market expectations of £90m to £109m,” said Duddy.
The company also today announced the appointment of John Walden, managing director of Argos since 2012, as its new chief executive taking over from Duddy from 14 March 2014.
In November, Argos signed a contract with O2 to provide free wifi in all of its stores to enable customers to view extended online ranges and exclusive online deals.