Central Activities

Central Activities represents the cost of central corporate functions and the investment costs of new development opportunities. Corporate functions costs for the year were approximately 10% lower reflecting ongoing cost management, while the investment costs of new development opportunities were also at a lower level than the prior year.

A review of the trial to develop the Argos format in India was completed in January 2009. A decision to discontinue the trial following the initial two year development period was taken mutually by Home Retail Group and its Indian partners Shoppers’ Stop and HyperCITY. The trial had not met the planned performance levels to support the investment required in the current Indian economic climate. The retail operations are being wound down at minimal cost to Home Retail Group. At some point in the future, the Indian retail market may still present an attractive long-term growth opportunity for the Argos multi-channel model.

The HomeStore&More development opportunity continues to be trialled. This out-of-town homewares format has seen its third UK store open recently in Harlow. In the latest store, greater emphasis has been placed on the bedding and textiles categories in order to further test the opportunity in these areas. A fourth trial store is expected to open in the new financial year. The Irish operation in which Home Retail Group has a 33% stake has now expanded to six stores in total; further expansion is likely to be dependent on conditions in the Irish economic climate improving.