Soaring sales at Homebase in Q2 this summer
Published: 13 September 2013
Home Retail Group has reported sales at Homebase in Q2 rose by 9.3% to £400m and like-for-like sales climbed 11%, compared to just 1.4% in Q1 of this year. It's being reported as the retailer's strongest performance in over a decade.
Seasonal categories were up over 20% and outdoor categories performed very well, too. The good weather throughout July and August has undoubtedly given retailers a sales boost this year. Homebase's Q2 report shows that around 40% of total sales in the quarter were of seasonal products, which is thanks to the favourable weather conditions.
Outdoor categories, such as garden furniture, were up 60% year on year, barbecues up by 56% and exterior paint by 40%. Gardeners were out in force as plant sales rose by 38% and sales in the watering category were up by more than 100%. Big ticket sales performance was also slightly ahead in Q2, while sales in the remaining categories were down.
Home Retail Group, which owns Homebase and Argos, also reported that similar growth at Argos was driven by strong sales of seasonal products. Barbecue sales were double those in 2012. Total sales at Argos grew by 2.4% to £889m and like-for-like sales increased by 2.7% in Q2.
Terry Duddy, HRG's chief executive, said: "Overall Homebase traded well through its peak period. At this stage of the financial year, we expect to deliver full year Group benchmark profit in line with current market expectations.
"Whilst we continue to expect consumer spending to remain subdued, we approach the important Christmas trading period in good operational shape. We are on track to deliver the investment plans which will drive the long term development of both businesses," he added.
Three Homebase stores closed during Q2, reducing the company's portfolio to 333.