Following September's update, half-year figures from Home Retail (HOME) contained few operational surprises. Like-for-like sales rose just 0.6 per cent at Argos and fell 6.2 per cent at Homebase. But management did outline its turnaround plan for Argos.
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Not surprisingly, management think Argos should "reinvent itself as a digital retail leader" and to move away from its catalogue-based past. That will involve investing £300m over three years and closing perhaps 75 stores over five years as leases expire - to generate mid-singe digit operating profit margin by 2018. Cashflow and the group's £316m cash pile, will fund that investment.
