Furniture and homeware are Argos’ weakest performers; Focus on Internet only bed sales

29th April | multichannel | Argos is to ramp up its Internet only beds offer in the next year as well as increase the number of products it sources direct from overseas manufacturers.

The retailer reported a sales fall to £4.28bn from £4.32bn and a like for like sales drop of 4.8% in the year to February 28, with furniture and homeware singled out as its worst performing categories.

Argos boss Terry Duddy said the home and general merchandise market had declined marginally over the past year, and that despite gains in some product categories, its exposure to the furniture market meant it was unable to grow its 10% overall market share.

He also had a warning for other retailers. He said, ‘In addition to reduced consumer demand, there are further retail industry specific pressures. Given the weakness of sterling, the cost of goods for the majority of home products will increase for virtually all UK retailers.’

Internet sales at Argos, however, remain on an upward curve. The web now accounts for 26% of all of the retailer’s sales, largely off the back of its hugely successful online check and reserve facility.

More Internet only products are to be introduced during 2009 – with beds one of the categories pinpointed for increased exposure.