Home Retail Group announces fall in profits

| April 20, 2011 | 0 Comments
Home Retail Group announces fall in profits

Home Retail Group, owner of Argos and Homebase, has today reported a 9.5% fall in pre-tax profits as conditions on the High Street remain challenging.

Profits fell to £265.2 million in the 12 months to 26 February compared with £293 million in the same period a year ago.

Meanwhile, revenue was almost 3% lower on an annual basis at £5.85 billion, with the Argos chain hit by a slowdown in consumer spending.

In a statement, the company said: “Prospects for the 2011/12 financial year are uncertain as consumers’ disposable income, and their willingness to spend, is impacted by an increased VAT rate, an increase in personal taxes and the rising cost of living plus the additional threat of public sector job losses and potential interest rate increases.”

Many retailers are suffering as a result of the economic uncertainty and last week, the British Retail Consortium reported total sales fell by 1.9% on an annual basis in February – the worst fall since the series started in 1995.

The trade body attributed the fall to the ongoing squeeze on household incomes due to soaring inflation and low wage growth.

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