Selling woks to the Chinese is Home Retail Group’s answer to reversing the near total wipeout of profits at its Argos chain, which caused shares to plunge almost 17 per cent on Wednesday.

Announcing a ￡45m joint venture to export Argos to China with white goods group Haier did little to improve sentiment. Analysts struggle to get their heads around how Argos – famed for selling cheap Chinese imports to UK consumers – could profit by selling the selfsame goods to Chinese internet shoppers. Haier obviously thinks the group’s multi-channel sales expertise brings something to the flat-packed table, but in the UK, the retailer’s problems look increasingly structural, not cyclical.

Chief executive Terry Duddy argues that the Argos business model is not broken – but tellingly, it will not be replicated in China. The group plans to open a single showroom in Shanghai, but Chinese consumers will be denied the pleasure of flicking through a giant laminated catalogue, as the online model eradicates printing costs. Property costs are also minimal, as Argos will piggyback off Haier’s existing franchise network of 6,000 small electrical stores, which will serve as a pick-up point for online orders.