Digital boost at Home Retail Group

Both businesses are engaged in major renewal programmes, and these also helped drive growth over the course of the year. Argos made big improvements to its digital offer, which pushed up online sales to account for nearly half of the total. New features included a single customer website login, 'one-click' reservation and extended delivery options. The company also trialled six digital concept stores over Christmas, allowing fast-track product collection, online pre-payment and a voice-driven picking system.

Another trial involved a new hub-and-spoke distribution model. This was a success and will now be rolled out from the North East to the rest of the country. The company also added thousands of new product lines, including 'aspirational' brands like Emma Bridgewater, Oxo kitchenware, Denby and Baby Bjorn. Underlying sales at Argos grew by 3 per cent overall, taking total sales to £4.05bn and driving a 12 per cent rise in adjusted operating profit to £112m.

A number of equally significant initiatives will play out this year at the retailer. A small-format shop is to be piloted in London, alongside a delivery service with time slots for larger 'two-men' items. Shoppers will also be able to check real-time stock availability and select narrower time slots for home delivery.

Over at Homebase - a smaller operation - 12 stores were given a face-lift and 13 closed, while next-day delivery was expanded to more lines. Online sales ballooned by 53 per cent to account for 7 per cent of the divisional total. Overall, underlying sales grew 6 per cent and operating profit 71 per cent to £18.9m.

Cantor Fitzgerald has upgraded pre-tax profit forecasts for 2015 by 11 per cent to £130m, taking EPS up to 11.6p.