Profits slump:Home Retail will not embark on a policy of mass store closures at its Argos business after it posted a 60 per cent slump in year profit and scrapped its dividend.

The owner of Argos and the Homebase DIY chain said it remained cautious about the consumer outlook as its cash-strapped consumers bear the brunt of the economic downturn.

Chief executive Terry Duddy said only seven of Argos’s 750 stores were not making a profit and store closures would be small. He also indicated more focus on selling via mobile phones and the internet.

The firm made an underlying pretax profit of £102 million (€126 million) in the year to February 25th, down from £254 million in the 2010/11 year.

Sales fell 6 per cent to £5.49 billion, with sales at Argos stores open over a year down 8.9 per cent. – Reuters