End of Year Trading Statement

Home Retail Group Plc
13 March 2008



                                                                   13 March 2008

                             Home Retail Group plc
                         End of Year Trading Statement

Home Retail Group, the UK's leading home and general merchandise retailer, today
announces details of the final eight-week trading period for the financial year
ended 1 March 2008.

Terry Duddy, Chief Executive of Home Retail Group, commented:

'Argos' sales performance has rounded off a successful year in which we expect
the Group to deliver another year of double-digit earnings growth in line with
market forecasts. Looking ahead, we continue to believe that the weakening
consumer outlook, as already evidenced at Homebase, is likely to restrict growth
in like-for-like sales in both businesses. While the new financial year
therefore looks challenging, we will continue building on our significant
operational strengths across the Group.'

                                         ----------
                                                               H2     Full year
Period to 1 March 2008                    8 weeks        26 weeks      52 weeks
Argos
Sales                                        £566m        £2,486m       £4,321m
Like-for-like change in sales                 1.9%           0.3%          0.7%
Net new space contribution to sales change    3.5%           2.8%          3.1%
Total sales change                            5.4%           3.1%          3.8%
Gross margin movement                 Down c.50bps   Down c.25bps    Up c.50bps

Homebase
Sales                                        £217m          £715m       £1,569m
Like-for-like change in sales                (5.3%)         (6.0%)        (4.1%)
Net new space contribution to sales change    4.6%           3.0%          2.5%
Total sales change                           (0.7%)         (3.0%)        (1.6%)
Gross margin movement                  Up c.150bps    Up c.200bps   Up c.250bps
                                         ----------

Argos
Total sales at Argos grew 5.4% to £566m in the eight weeks to 1 March 2008. Net
new space contributed 3.5%; there were seven openings and one relocation in the
period, with the portfolio increasing by a net 27 over the full year to reach
707 stores.

Like-for-like growth was 1.9% in the period. A further excellent performance in
the video gaming category was the key driver of this, with a strong January sale
and the earlier timing of Mother's Day also being contributory factors. An
adverse product mix impact, together with the January sale, led to an
approximate 50 basis point decline in the gross margin; ongoing sourcing gains
and foreign exchange benefits continued to be reinvested in lower prices for
customers. Argos' Internet sales grew by over a third to represent 23% of all
sales, driven in particular by the convenience of online orders for immediate
store collection on over 14,000 products out of the catalogue's total 18,500.

Homebase
Total sales at Homebase declined 0.7% to £217m in the eight weeks to 1 March
2008. Net new space contributed 4.6%; there was one opening and two relocations
completed in the period, with a net eight stores added over the full year. The
portfolio of 331 stores at the year-end also included 12 relaunched from the
Focus purchase, with further stores anticipated to reopen in the coming weeks.

Like-for-like sales declined 5.3% in the period. Most product categories
continued to see a difficult trading environment, although kitchens were once
again an area of strong growth. Further supply chain progress and foreign
exchange benefits led to an approximate 150 basis point gross margin increase.

Enquiries

Analysts and investors (Home Retail Group)
Richard Ashton                 Finance Director                 01908 600 291
Stuart Ford                    Head of Investor Relations

Media (Finsbury)
Rollo Head                                                      020 7251 3801

There will be a conference call for analysts and investors to discuss this
statement at 8.30am this morning. The call can be listened to live on the Home
Retail Group website www.homeretailgroup.com. An indexed replay will also be
available on the website later in the day.

Home Retail Group will announce its full-year results on Wednesday
30 April 2008.

Information in this announcement is based upon unaudited management accounts. In
addition, certain statements made are forward looking statements. Such
statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual events or results to differ
materially from any expected future events or results referred to in these
forward looking statements.



                      This information is provided by RNS
            The company news service from the London Stock Exchange