Published on 8th June 2014
Be wary of Home Retail’s revival, Danny Fortson advised in the Sunday Times. The owner of Argos and Homebase has surprised investors by turning itself into a click-and-collect powerhouse, combining online sales with Argos’s branch network. First-quarter trading numbers should be strong on June 10th. But in his Inside the City column Fortson said Argos does not sell anything distinctive leaving rivals to emulate its move into bricks and clicks. Home Retail trades at a 20% premium to its competitors. Rising labour costs in China, where the company spends more than half its cash, could also dampen the revival.