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Argos, Homebase And Habitat Owner Reports Profits Down For Fifth Year

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http://www.guardian.co.uk/business/2013/may/01/argos-homebase-habitat-hrg-profits-down

Profits at the group behind Argos, Homebase and Habitat have fallen for a fifth consecutive year as the economic downturn continues to take its toll on retailers.

Home Retail Group reported a 23% fall in profit before tax to £99m in the last 12 months, with revenues broadly flat at £5.48bn.

Despite what he described a "challenging year", HRG's chief executive, Terry Duddy, said the transformation of Argos from a catalogue to a digital retail business was progressing, with over half of sales made through new channels such as smartphone apps and the website.

"Against a backdrop of subdued consumer spending, the group has achieved a good outcome to what has been a challenging year," said Duddy.

Homebase profits were washed away by poor weather last summer, with sales down nearly 5% and underlying profits halving to £11m. Argos returned to sales growth for the first time in five years, delivering a 2% rise in like-for-like revenues, and underlying profits recovered by 6% to £100m.

No figures given to what profits where 5 years ago.

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'Homebase profits were washed away by poor weather last summer'

love what they did there

homebase is sh1t

Add pretty much any of the DIY chains to the sh1t list.

Poor quality of products on sale and choice so limited that it is scarecly worth going through the doors unless you want to buy overpriced junk that your local poundland sells for a tenth the price.

They just seem to sell stuff that cheapskate landlords fit to rental properties. There has to be a reason but can I see it... wait! I think I can.

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agreed homebase is dire. There must be some hefty devel costs through the profit and loss because 99mn profit on 5000mn+ revenue is dire!

edit:i have not looked at the detail numbers but suspect big problems - falling margins, falling sales, rising capital expenditure on tech in Argos. this is not advice!

Edited by Ash4781

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That's funny. Their accounts seem to show profit before tax of £130m (£94m after tax). Up from £104m (£73m) last year.

The previous two years saw much bigger profits, but the year to 2009 saw a stonking loss of £394m before tax.

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Let 'em fail.

Does anybody know what is going on with Homebase right now? They seem to be having closing down sales at stores all over the place... or is that just a north of England phenomenon? I've heard that their Ireland stores are in administration.

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How on earth do these types of places stay open? I was in PC world today and there were more staff than there were customers. I must have counted 50 of them, moping around, pissing about on the computers.

Is this the result of the governments latest 'we'll pay you to hire people' insanity or something? I cant work it out otherwise...are they unpaid interns?! :blink:

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Homebase are very expensive (as are B & Q for that matter) - I work for a single store hardware shop in a small market town and we can beat them on price everytime, and yet the public perception is that the big box stores are cheap.

Argos however have surprised me a couple of times recently. Hadn't used them for years and happened to check their website. They had what I wanted in stock at local store and cheaper than Amazon. Picked it up that evening as I drive by every day anyway and no need to hang about waiting for a delivery. Second item was same price as Amazon. Not sure if Argos are actively pricing at Amazon prices, but I can see Argos closing High St locations and concentrating solely on out of town pick up points with people ordering online.

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Argos however have surprised me a couple of times recently. Hadn't used them for years and happened to check their website. They had what I wanted in stock at local store and cheaper than Amazon. Picked it up that evening as I drive by every day anyway and no need to hang about waiting for a delivery. Second item was same price as Amazon. Not sure if Argos are actively pricing at Amazon prices, but I can see Argos closing High St locations and concentrating solely on out of town pick up points with people ordering online.

That would make a lot of sense,given that postage is moving up.

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  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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