Argos has reported a £223.2 million pre-tax loss for its latest financial year after reducing its workforce by more than 2,000 and experiencing a decline in sales due to a challenging general merchandise market. The retailer, acquired by Sainsbury’s in 2016, saw a significant reversal in performance from the £37.3 million profit recorded the previous year. Newly filed accounts for the 12 months ending 1 March 2025 reveal that revenue decreased from £4.22 billion to £4.13 billion, reflecting weakened demand in key categories.
The headcount was reduced from 12,000 to 9,800 as Argos continued with restructuring efforts aimed at simplifying its operating model and reducing costs. The company attributed its revenue decline to a “subdued and highly competitive general merchandise market,” with a significant drop in online traffic in the first half of the year. Additionally, a “cooler and wetter summer” adversely affected seasonal demand, leading to sales falling below expectations.
Despite the weak start, Argos reported improved trading in the second half as online visits recovered. The retailer achieved year-on-year growth in the fourth quarter, bolstered by extensive promotional activities. However, Argos posted an underlying pre-tax loss of £73 million, primarily due to thinner margins as promotional sales increased significantly amidst “tough trading conditions.”
In a board-approved statement, Argos emphasised its focus on increasing shopping frequency and encouraging larger basket sizes: “Following a slow start to the financial year and within a general merchandise market that remains highly competitive, our focus is on encouraging customers to shop with us more often and with bigger baskets. We are driving change in our digital and commercial proposition and have made good progress strengthening the Argos offer.”
This update follows Sainsbury’s announcement of entering discussions over a potential sale of Argos to Chinese e-commerce giant JD.com, which were abruptly called off a day later. JD.com, the largest retailer in China with over 600 million active customers, had been considering expansion into European omnichannel retail, but no agreement was reached.
