Popular iPad 3 helps Argos out of trading slump

Gadget fans who flocked to Argos to buy the new iPad 3 gave the troubled chain a welcome sales lift.Improved sales of electronics goods, driven by the highly-anticipated release of the latest iPad in March, eased the recent decline at the catalogue stores.

But the wash-out weather proved a dampener for Home Retail's other chain Homebase, which saw soggy sales in the past few months.

Popular gadget: iPad 3 drives forecast-busting sales at ArgoBoss Terry Duddy was nevertheless upbeat about the group's summer prospects, saying he had already detected signs of some consumer cheer ahead of the Olympics.'One of the things that may be coming through here is a bit of a feelgood factor as far as consumers are concerned - people are getting out there and continuing to enjoy themselves,' he said.

Gazebos sold well over the wet Jubilee weekend as Britons looked for cover from the rain, while Union Jack items such as deckchairs were also in demand.Argos saw like-for-like sales decline by a much better than expected 0.2 per cent in the three months to June 2. Analysts had expected Argos first quarter sales to fall by around 4 per cent.

The improved trading followed an 8.7 per cent decline in the previous six months as Argos struggled amid a tough consumer electronics market and dire high street trading conditions.

Two Argos stores were shut in the past quarter, leaving it with 746. Home Retail plans to close 10 this year, but continues to resist calls for widespread closures, claiming its stores support its presence online and that only seven are loss-making.

Meanwhile, DIY chain Homebase suffered an 8.3 per cent slide in like-for-like sales. Seasonal products, which account for around 40 per cent of sales in the 341-strong business, plunged by around 15 per cent after the wet start to the summer.The dismal weather in April accounted for 80 per cent of the first quarter sales decline at Homebase, but it outperformed competitors in a difficult market, according to Home Retail.

Kingfisher-owned rival DIY chain B&Q recently unveiled a 12 per cent slide in sales due to poor demand for outdoor products and building materials.Duddy claimed they were 'victims' of the weather, with Homebase heavily weighted towards garden products.

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