09 November 2007 | Paul Snell
Home Retail Group, the owner of Argos and Homebase, has praised its purchasing function for its successful financial results.
Announcing its half-year results, the retailer said supply chain initiatives continued to provide benefits across the group.
Chief executive Terry Duddy said: "Home Retail Group continues to leverage its sourcing capacity and scale, improving the gross margin and bringing more compact pricing."
Profit at Argos rose by 50 per cent and by 12 per cent at Homebase, compared with the same period last year. Sales were up 3 per cent in the same period.
When HRG bought Homebase in December 2002, the group said there would be large economies of scale thanks to increased buying power.
Commenting on the recent results, Paul Loft, managing director of Homebase, said: "We benefit from a wide range of cost synergies. Most important is sharing our sourcing with Argos."
Last month HRG bought 27 Focus DIY stores in a deal worth £40 million.