GUS said higher interest rates and utility bills and a more cautious approach to borrowing all contributed to a slowdown in consumer spending, while costs for Homebase also increased. But it said the chain had still outperformed the DIY market in general.
Homebase, part of the Argos Retail Group, recorded sales of £1.56bn during the year, slightly down on the previous 12 months.
The company opened 10 new stores, added 23 mezzanine levels in existing branches and began the national roll-out of Furniture Extra.
The group expects the DIY market to remain “difficult”, with underlying cost inflation rising by about 4%. It will continue to implement cost reduction programmes and productivity improvements.
