GUS warns over Argos growth

RETAILER GUS has warned it will not be able to sustain the buoyant growth within its catalogue shopping chain Argos, despite another set of blistering sales figures for the first quarter.

Strong demand for consumer electronics, mobile phones and toys pushed like-for-like growth at the operation to 8% for the three months to 30 June. That's far ahead of the 2% to 3% market average.

But finance director David Tyler said that while GUS was on course to hit full-year targets, consumer spending was likely to slow. Its credit checking operation Experian lifted sales 16% while like-for-like sales at DIY chain Homebase rose 3%.