Home Retail shares fall 15pc amid doubts about future - Telegraph.co.uk

Home Retail has, however, left the door open to a wider review of its stores at a later date. It said 295 Argos or Homebase branches – about 30pc of all its properties – have lease renewals or breaks over the next five years. Mr Duddy said he expected about 10 Argos branches would be shut each year.

But retail analyst Philip Dorgan warned that John Walden, who was brought in as managing director of Argos nine weeks ago, would have to radically reposition the business away from bricks and mortar to the web and mobile if it is to survive in the long term.

Mr Dorgan, an analyst with Panmure Gordon, said Argos would need a "significant store closure programme, as it shifts towards 'clicks' rather than 'bricks'". He suggested Argos would also have to compete with the likes of online retail giant Amazon on price.

"It will probably need a rescue rights issue to finance change," he added.

Mr Walden has asked OC&C Strategy Consultants to review the chain's future.

Home Retail announced it would not pay a final dividend after unveiling a 60pc fall in annual pre-tax profit to £102m. Sales fell 6pc to £5.5bn after a particularly sharp slump in sales of televisions, gaming consoles and other electrical items.

The shares closed down 14.65 at 86.35p.