HOME Retail Group has named former Best Buy executive John Walden as the new boss of its struggling Argos business.
He takes over as managing director of the chain next month and will report to group chief executive Terry Duddy, who had taken on the role temporarily after the departure of Sara Weller last April.
“We look forward to John bringing a valuable, fresh perspective to the future development of Argos,” said Duddy yesterday.
Argos, which reported a 8.8 per cent slump in sales over the Christmas trading period, is facing fierce competition from supermarkets and internet players and has been particularly hit as low-income customers struggle with severe budget squeezes.
Duddy warned that the group, which also owns Homebase, would have to cut its final dividend and said that it expects profits to be 60 per cent lower this year at around £100m.
He also said HRG would close its four-store UK homewares trial HomeStore&More at a cost of £10m and pledged to scale back Argos’ 750-strong estate as leases come up for renewal over the next five years.
The group has come under pressure from analysts to close more of its stores, but Duddy has rejected this plan, arguing that the wider economy was to blame rather than his strategy for the company.
With 40 per cent of Argos sales now made over the internet and 10 per cent of internet sales made via smartphones, Duddy’s strategy is to invest in a variety of purchasing options for customers.
Shares in Home Retail Group, which have lost over half their value in the last year, closed down 1.3 per cent last night at 106p.
