Argos sales falls more-than-expected; shares tumble

Home Retail Group reported worse-than-expected drop in sales at its catalogue-based Argos stores for the quarter ended May 29th, in a move that dragged shares down by 4.08 per cent or 9.7 pence to 228.3 pence-a-share. Like-for-like sales at Argos slipped 8.1 per cent over the 13-week period, leading to a 5.2 per cent fall in revenue. Total sales slipped 5.2 per cent to settle at £889 million.

Home Retail Group also announced that its Homebase chain suffered a fall of 1.4 per cent in sales over the same period.

Argos Group Shines after Stake Sale reports

Shares in Argos possessor Home Retail Group took off today in the middle of rumor of a possible proposal from supermarket chain, Asda.

Home Retail, which also possesses Homebase, bounced more than 5% after it was acknowledged as a potential target in Asda's development plans.

The superstore, which is owned by US food giant Wal-Mart, is apparently considering a great acquirement as it looks to seal the gap between opponent Tesco and improve its share of the universal commodities market.

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