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Tuesday, 15 October, 2002, 15:55 GMT 16:55 UK
Sales grow at retail giant
Argos store
Sales grew faster than expected in the run-up to Christmas
Retail group GUS has seen sales rise comfortably at its High Street chain Argos, and said there was better to come in the second half of the year.

Argos, which sells everything from furniture to electronic goods through its chain of catalogue-led showrooms, saw sales rise 12% in the six months to September.

And GUS's other key business, the business information and credit rating agency Experian, also performed well, with sales up 6% - or 10%, not including the negative effect of shifting currency values.

"We have made good progress in all our major businesses during the first half of the year," said John Pearce, chief executive.

"We continue to view the outlook for the second half with confidence."

Keeping the City posted

The full figures for the first six months of the financial year will not be released until November.

But, with fears of fading UK consumer confidence, Argos's statement will be keenly dissected by analysts for signs of a downturn in High Street spending.

GUS was keen to stress the improvements in its figures.

Argos had accelerated its sales growth twofold, thanks to fresh autumn lines and modernised stores and despite weakness in home shopping sales.

Burberry, the high-fashion house that GUS floated on the stock market to a muted reception earlier this year and in which it still holds three quarters of the shares, saw sales rise 15%.

And Experian, whose credit rating business is doing very well out of the surging levels of consumer debt, strengthened everywhere outside North America.

UK sales were up 11% on last year, with the rest of the world up 8%, making a total international gain of 10% regardless of exchange rate changes.

But the US was slower, posting a gain of just 4% - or 11%, given the rising value of the dollar.

GUS shares closed 34p higher at 572p in London on Tuesday.

See also:

14 Oct 02 | Business
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