By Daniel Hunter
Argos sales have been hit by falling demand for electrical goods like TVs, laptops and tablets, according to its owner Home Retail Group.
The retailer saw like-for-like sales fall 3.9% to £846 million in the three months to the end of May.
Home Retail had previously warned that sales were likely to fall over the period.
"The performance at Argos in the quarter was broadly in line with both our expectations and previous guidance, with sales being adversely impacted by market declines in key electrical and seasonal product categories," said Home Retail Group chief John Walden.
"We continue to expect that sales will be challenging during the first half [of the financial year] at Argos, but we look forward to a stronger second half."
Homebase, which is also owned by Home Retail Group, reported a 5.4% rise in sales to £438m. Although it said this was partly due to stock clearances at store closures.