First Half Trading Update

Great Universal Stores PLC
12 October 2000


                      THE GREAT UNIVERSAL STORES P.L.C.                       
                                                                              
                          FIRST HALF TRADING UPDATE                           
 
 
The Great Universal Stores P.L.C. (GUS), the retail and information services
group, is today issuing its regular update on trading in its main businesses. 
 

Argos Retail Group

The Argos Retail Group has continued to perform well in a challenging retail  
environment. 
 
% change in sales year on year for the 26 weeks to 30 September 2000 * 
 
Argos     - total               14% 
          - like for like       11% 
 
UK Home Shopping                -5% 
 
* These figures exclude the impact of Argos Additions. 
 
In the first half, total sales at Argos increased by 14% over the same period
last year, with like-for-like sales up 11%. The key driver of this strong
performance was again the single catalogue. This was first introduced in
August 1999, offering nearly 30% more product lines in most stores. Furniture
and mobile phones were the best performing product groups. Gross margins were
above those for the same period last year. 
 
Sales at UK Home Shopping for the first half declined by 5%, partly
reflecting reduced customer recruitment expenditure. Gross margins were in
line with last year and stock levels at the end of the period were lower. 
 
Sales in the first half from Argos Additions were £15m. In August, the
catalogue was extended into a further 160 stores, bringing the number to 213
stores, approximately half of the total. Customer response is encouraging and
autumn business is in line with expectations. 
 
New initiatives in financial services are now under way at the Argos Retail
Group. Argos is today launching its new store card in three regions. UK Home
Shopping began its credit card test at the end of September. 
 

Experian

Experian has achieved underlying sales growth of 4%. However, sales were
adversely affected to the extent of 2% by the rationalisation of certain
product lines in North America. Profit growth for Experian in the first half
exceeded the level of sales growth. 
 
% change in sales year on year for the 26 weeks to 30 September 2000 
 
                                  Total               Underlying * 
 
Global Experian                    3%                     4% 
 
Experian North America             2%                     0% 
 
Experian UK                       11%                    11% 
 
Experian Rest of World            -1%                    15% 

 
* Underlying sales growth excludes acquisitions and divestments and is at
constant exchange rates 
 
Experian UK and Rest of World both continued to trade strongly, with sales up
by 11% and 15% respectively on an underlying basis. The loss-making French
facilities management business, which had annual sales in 1999/2000 of £20m,
was sold in July 2000. 
 
In North America, sales were up 2%. At constant exchange rates and excluding
the two businesses put into joint ventures last year, underlying sales were
unchanged. Sales growth in North America, however, was reduced by 3% by the
rationalisation of product lines. Marketing Services showed an encouraging
recovery with sales up 4%, but Information Services had a difficult second
quarter and was 4% down in the half. Experian North America continues to
launch new and unique products, such as its nation-wide automotive database
and the National Fraud Database. The North American management team has
recently been strengthened by the appointment of Craig Smith as Chief
Executive in July 2000. 
 

Reality
Reality has had a successful start since its launch five months ago. 
 
To date, Reality has won 17 third party contracts, with a total value of
£119m (annual value in excess of £20m). These contracts range over all of
Reality's activities: e-commerce services, customer contact and logistics.
Reality is also engaged in discussions with a significant number of further
prospective clients.   


Burberry
The repositioning and revitalisation of the Burberry brand continues to
generate excellent sales and profits growth. 
 
In the first half, sales were up by 38% at constant exchange rates, excluding
Burberry Spain. Both retail and wholesale showed significant sales growth.
Wholesale orders in all regions for Spring 2001 indicate continued strong
demand.  
 
Burberry acquired its Spanish licensee on 30 June 2000. This business is
trading in line with expectations. 

The new flagship store in New Bond Street, London opened in August and is
trading ahead of expectations. Burberry has also recently purchased the
property next to its 57th Street store in New York. It plans to bring the two
sites together, more than doubling the size of its US flagship. The new store
is due to open in Autumn 2002.


South African Retailing
In rands, sales in South African Retailing were down 16% in the first half.
This business is being affected by the introduction of the state lottery and
a more competitive credit environment. 
 

Future Announcements
GUS will announce its interim results on 30 November 2000. The next detailed
comment on current trading will be the Third Quarter Update in the middle of
January. 
 

Reporting Structure
The interim results will be presented in the new reporting structure,
separating out Reality and Argos Retail Group Financial Services. The
appendices restate interim and full year results for the last financial year
(1999/2000) on this basis.  
 
 
Enquiries: 
GUS          David Tyler     Finance Director          Tel: [phone] 
             Fay Dodds       Investor Relations 
 
Finsbury     Rupert Younger                            Tel: [phone] 
             Rollo Head 
 
The announcement is also available on the GUS website: www.gusplc.co.uk 
 
 
 
Appendix 1 

The Great Universal Stores P.L.C. 
Year to 31 March 2000 
 

                                                                              
Divisional analysis (as reported)                      Turnover    Trading    
                                                                    profit 
                                                                   
                                                            £m          £m  
Experian                                                 955.9       200.6 
 
Argos                                                  2,057.0       137.4 
 
Home Shopping                                                              
                United Kingdom                         1,684.2        21.0  
                & Ireland (note 1)                                            

                Continental Europe                       336.5        25.1  
                                                                       
Burberry                                                 229.8        21.7
  
South African Retailing                                  169.7        46.0 
 
Finance Division                                         225.3        33.1 
 
Property                                                     -        33.9 
 
Central Costs                                                -        (6.9) 

Net Interest                                                 -       (64.0) 

                                                       5,658.4       447.9 
 
Divisional analysis (restated to show the Argos Retail Group and Reality)
   
                                                       Turnover    Trading
                                                                    profit  
                                                            £m          £m  
Experian                                                 940.6       200.6  

Argos Retail Group                                                          
                    Argos                              2,057.0       137.4  
                      
                    Home Shopping UK (note 1)          1,622.0        11.8    
                                                                              
                    Financial  Services                      -        14.4  
                                                                    
                    Home Shopping Europe                 336.5        25.1  
                                                                        
                                                       4,015.5       188.7 
 
Reality (note 2)                                         444.2         2.8
 
Burberry                                                 229.8        21.7
 
South African Retailing                                  169.7        46.0
  
Finance Division                                         225.3        25.1 
 
Property                                                     -        33.9  

gusco.com                                                    -           -  

Central Costs                                                -        (6.9)
 
Net Interest                                                 -       (64.0)
 
Inter-divisional turnover                               (366.7)          - 

                                                       5,658.4       447.9  
                                                                        
Note 1 - Trading profit includes £12m of rationalisation costs  
Note 2 - Reality's external sales amounted to £77.5m            
 
 
 
Appendix 2 

The Great Universal Stores P.L.C 
Six months to 30 September 1999 
 

                                                                              
Divisional analysis                                Turnover         Trading   
                                                                     profit
                                                                  (restated)  
                                                                    (note 1)
                                                         £m              £m 
Experian                                              472.4            97.2  
Argos                                                 806.0            31.7  
Home Shopping                                                               
                      United Kingdom                  763.7            14.7 
                      & Ireland      
                                       
                      Continental Europe              170.1            12.5 
                                                                     
Burberry                                              109.1             4.3  

South African Retailing                                94.1            17.5 
 
Finance Division                                       80.2            15.2  
  
Property                                                  -            16.0 
 
Central Costs                                             -            (3.5) 

Net Interest                                              -           (29.5) 

                                                    2,495.6           176.1  

Divisional analysis (restated to show the Argos Retail Group and Reality)   

                                                   Turnover         Trading
                                                                     profit 
                                                         £m              £m 
Experian                                              466.0            97.2
  
Argos Retail Group                                                          
                      Argos                           806.0            31.7 
 
                      Home Shopping UK                741.7             9.8 
                                                                        
                      Financial Services                  -             6.8 
                                                                   
                      Home Shopping Europe            170.1            12.5 
                                                                        
                                                    1,717.8            60.8 
 
Reality (note 2)                                      212.0             1.3
  
Burberry                                              109.1             4.3  

South African Retailing                                94.1            17.5  

Finance Division                                       80.2            12.0  

Property                                                  -            16.0 
 
gusco.com                                                 -               -  

Central Costs                                             -            (3.5)
 
Net Interest                                              -           (29.5) 

Inter-divisional turnover                            (183.6)              -  

                                                    2,495.6           176.1  

Note 1 - Divisional analysis as reported has been restated to show Central    
         Costs separately                                            
Note 2 - Reality's external sales amounted to £28.4m