New Argos owner Sainsbury’s has reported a decline in sales in its second quarter, although Argos itself saw revenues grow delivering its best performance since 2014.
According to Sainsbury’s second quarter trading statement for 16 weeks to 24 September 2016, overall group sales fell 0.4%, with like-for-like retail sales down by 1.1%.
Despite the decline, Sainsbury’s were boosted by its newly acquired Argos division, as sales rose by 3% for the 13 weeks to 27 August, with like-for-like sales up by 2.3%.
The group highlighted that its Argos offer would expand with 30 new Argos digital stores within Sainsbury’s stores before the end of the year, with 15 already open across the UK, as well as launching 200 digital collection points, whilst confirming to combine both Argos and Habitat as one ‘multi-channel, multi-product retailer’.
Sainsbury’s completed the acquisition of Home Retail Group on 2 September 2016 after securing the deal with a £1.4bn bid back in March.
Mike Coupe, group chief executive, said: “We continue to make progress against our strategy and, while like-for-like sales were down, we delivered like-for-like transaction growth across all channels and total volume growth.
“Our general merchandise and clothing offer is popular with customers and the acquisition of Home Retail Group will accelerate our multi-product, multi-channel strategy.
“We expect the market to remain competitive and the effect of the devaluation of sterling remains unclear. However, Sainsbury’s is well positioned to navigate the changing marketplace and we are confident that our strategy will enable us to continue to outperform our major peers.”