Retail and business services group GUS today posted falling sales at catalogue chain Argos and home improvements firm Homebase, saying it expected no great improvement over the coming year with retail conditions remaining tough.

GUS said its Argos chain saw its like-for-like sales, excluding new floor space, dip 3.0 per cent in the six months to September 30, compared with the same period last year.

The business, which sells everything from electrical appliances to garden furniture, noted good performances from consumer electronics, white goods, leisure and toys. But, jewellery and housewares remained "difficult".

"Argos is planning on the assumption that like-for-like sales will remain in decline for the market as a whole for the next 12 months," Gus said in a statement.

At Homebase, like-for-like sales were also lower, down 4.0 per cent after a poor performance from tools, building and seasonal gardening lines.

"The non-food, non-clothing market in the UK remained weak during the first half," GUS noted in the statement. That was set against a backdrop of slowing consumer demand in Britain over the same period.

One bright note for the retail conglomerate was strong growth at its credit checking unit Experian. Total global sales were up 29 per cent at both actual and constant exchange rates over the six month period.

Commenting on the results, John Peace, the chief executive of GUS, said: "An outstanding performance from Experian was clearly the highlight of our first half. With sales up 29 per cent, the strength of Experian's broad product and geographic reach is evident."

Burberry Group, the luxury brand in which GUS has a 65-per cent stake, saw first half sales at actual and constant exchange rates increase 2.0 and 3.0 per cent respectively.

GUS said preparations for the planned demerger of its remaining Burberry stake in December this year were "on track".

The group has also committed to demerge Experian and the Argos Retail Group, incorporating both Argos and Homebase, at a later unspecified date.

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