A major UK retailer has reported a rise in group sales alongside a decline in one of its key divisions, despite profit growth across the business.
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Sainsbury's, which owns Habitat and Argos, recorded a 1.8% increase in total group sales to £32.8bn for the year ended 1 March 2025. This was largely driven by Sainsbury's own performance, with sales up 4.2% to £26.6bn. However, Argos saw a 2.7% drop in sales to £4.6bn.
Despite the fall in sales at Argos, the group's overall pre-tax profit rose 76.6% to £242m from £137m the previous year.
The group noted that Argos faced a "slow start" to the financial year, impacted by reduced online traffic, though performance improved in the second half. Sales growth returned in the fourth quarter after measures were taken to drive customer engagement and digital improvements.
As part of efforts to strengthen Argos' appeal, more than 4,000 new products were added through its Supplier Direct Fulfilment model, a 43% year-on-year increase. The total SDF range now comprises 13,500 products, with plans to add 10,000 more in categories including "Household Electronics", "Furniture", "Computing" and "Gifting".
Store changes included the opening of 16 new Argos locations within Sainsbury's and the closure of 10 standalone stores, bringing the total to 664 Argos stores and 1,107 overall points of presence.
Chief Executive Simon Roberts said the group had 'created a winning combination of value, quality and service', with plans underway to invest in expanding store space and delivering long-term growth through its "Next Level" strategy.
Source: www.bigfurnituregroup.com
