Home Retail Group PLC released an analysis, on Thursday, predicting the sloth in the economic growth to persist for another couple of years with the productivity remaining dreary. The group reported a fall in its same-store sales in the first quarter of fiscal year 2010.

Chief Executive, Terry Duddy said that the economy is likely to face numerous challenges and difficulties, as the customer base in almost all the firms seem to be weakening.

"At this early stage of the financial year, we are targeting to achieve a similar level of profitability to last year”, he said.

The Group’s pretax profits were reported to be GBP292.9 million, last year in the same quarter.

In its first quarter ending May 2010, it reported a 1.4%0 dip in its sales in all the stores. Net annual, sales dropped by 1.4% to GBP459 million.

In addition, the Group suffered the fall of 150 basis points I gross margins. These falls have been triggered by pessimistic currency effects and rates in shipping.

Argos, the general commodities retailer, also, suffered an 8.1% slide in same-store sales which accounted to a net drop of 5.2%, reaching GBP889 million.