Poor weather conditions were blamed for Homebase's drop in sales for the 26 weeks to September 1, 2012, with the final figure revealed as £787m in Home Retail Group's half-yearly report.
Total sales at Homebase declined by 3.9% (-3.7% LfL) for the last 13 weeks of the half, with the closure of the Lincoln store reducing sales by 0.2%. The decline of big ticket sales and the impact of bad weather on seasonal products were pinpointed as the biggest contributing factor to the slide in Q2, with other categories described as "broadly flat."

Sales at Argos, meanwhile, saw some growth, up 1.4% on a like-for-like basis in the second quarter, bringing overall revenue to £1,686m for H1. This was driven by consumer electronics and the 24% growth of Click & Reserve, which represented 30% of total Argos sales during Q2. Internet sales also grew by 16%, accounting for 42% of total Argos sales.

Home Retail Group chief executive Terry Duddy said: "Argos has had a solid first half of the year supported by its multi-channel performance, while at Homebase seasonal product sales continued to be adversely impacted by the poor weather conditions.

"At this stage, we expect to deliver full group benchmark profit in line with current market expectations but, as always, the outcome will depend upon trading at Argos in its peak Christmas period. While we continue to plan cautiously we approach our peak trading period in good operational shape."