Argos said furniture sales were strong in the eight weeks to 27th February as total revenue across the multichannel retailer increased on the back of new digital store concessions.

Parent company Home Retail Group said Argos sales climbed 1.9 per cent to £515m during the two month spell, to lift second half sales to +1.1 per cent to £2.35bn and full year sales to flat at around £4.1bn.

Home Retail Group CEO John Walden said: “This has been another rather eventful period for the group, during which we completed the sale of the Homebase business and both J Sainsbury PLC and Steinhoff International Holdings NV announced possible offers for the acquisition of the remaining group.

Net new space contributed 3.0 per cent as a result of the 94 digital concessions and collection points opened within the past year. The store estate increased by a net 90 stores to 845 in the year.

Argos said sales of non-electrical product categories grew during the period, principally attributable to the performance of furniture and general sports, partially offset by a decline in jewellery.

Sales of electrical products declined during the period, mainly driven by video gaming, tablets and white goods, while mobiles continued to deliver good levels of growth, Argos said.