Argos has fallen to a £223.2 million pre-tax loss in its newest monetary yr after reducing greater than 2,000 jobs and struggling a drop in gross sales amid a tricky basic products marketplace.
The store — owned through Sainsbury’s since 2016 — noticed its efficiency swing sharply from the £37.3 million benefit it posted the former yr. Newly filed accounts for the one year to one March 2025 display earnings slipped from £4.22 billion to £4.13 billion, reflecting weakened call for throughout key classes.
Headcount fell from 12,000 to 9,800, as Argos driven forward with restructuring efforts designed to simplify its running type and scale back prices.
The corporate stated earnings have been hit through a “subdued and extremely aggressive basic products marketplace”, noting that on-line visitors dropped considerably within the first part of the yr. A “cooler and wetter summer time” additionally dampened seasonal call for, resulting in gross sales falling wanting expectancies.
Regardless of the vulnerable get started, Argos reported advanced buying and selling all through the second one part as on-line visits recovered. The store returned to year-on-year expansion within the fourth quarter, supported through heavy promotional job.
Argos posted an underlying pre-tax lack of £73 million, pushed through thinner margins as promotional gross sales rose sharply in what it described as “difficult buying and selling stipulations”.
In a observation signed off through the board, Argos stated it was once keen on riding extra widespread buying groceries and inspiring better baskets:
“Following a sluggish begin to the monetary yr and inside a basic products marketplace that is still extremely aggressive, our focal point is on encouraging shoppers to buy with us extra continuously and with larger baskets. We’re riding alternate in our virtual and business proposition and feature made just right development strengthening the Argos be offering.”
The replace comes in a while after Sainsbury’s showed it had entered talks over a possible sale of Argos to Chinese language e-commerce massive JD.com — handiest to swiftly abandon the discussions an afternoon later. JD.com, China’s biggest store with greater than 600 million energetic shoppers, have been exploring enlargement into Eu omnichannel retail, however no settlement was once reached.
Amy Ingham
Amy is a newly certified journalist specialising in industry journalism at Trade Issues with duty for information content material for what’s now the United Kingdom’s biggest print and on-line supply of present industry information.
