Deathwatch: Argos sees profits slide
Argos has warned that they're probably going to have to close loads of stores after the catalogue vendor saw a massive slump in full-year profits. That's what you get for hiring singing aliens to run your company.
The retailer saw a 9% drop in like-for-like sales and a near 60% plunge in operating profits leaving owner, Home Retail Group, noting that the leases on around 230 Argos stores will be up for renewal soon and that many of these could be shut down.
A company statement, grinning while crying, said: "With this flexibility, Argos will focus on optimising its store network by relocating or closing some older stores and opening some new stores if attractive sites become available."
Home Retail also owns Homebase who also saw sales dropping and profits going on the slide. "Future dividends will be set at a level which is sustainable and which reflects the trading prospects and financial position of the Group," added Oliver Stocken, chairman of Home Retail Group.
As such, Argos boss John Walden has launched a review in an attempt to turn around the fortunes of the store. It appears that there'll be a move to take everything online in a bid to rescue the company.
George MacDonald, deputy editor of Retail Week, told Sky News that Argos had "big problems". "They need to take some action to take control of their own destiny a bit more. The stores are not great places to go for the experience, they are not comfortable and a bit dingy often, but has a great distribution centre."
Will Argos be vanishing from the high street? Do you even care?