Argos ‘well positioned’ to face Amazon problem amid transformation, says boss
A
rgos is “well positioned” to resist the problem of Amazon and different on-line retail giants, in accordance with bosses at guardian agency Sainsbury’s.
Paula Nickolds, the boss of the grocery big’s normal merchandise enterprise together with Argos, mentioned the retail model has maintained its “strong emotional bond with customers” regardless of modifications to its operations amid shifting client habits.
It comes because the excessive road stalwart marks 50 years because it was based by Richard Thompson in July 1973.
The initially catalogue-oriented retailer quickly grew throughout the UK to change into one of many UK’s most recognisable excessive road manufacturers.
However, its latest historical past has come amid a backdrop of fierce change within the retail trade amid the extreme competitors of on-line normal retailers.
Argos was taken over by Sainsbury’s, the UK’s second largest grocery store chain in 2016, as a part of its £1.4 billion takeover of Home Retail Group.
Three years in the past, Argos introduced it could discontinue manufacturing of its recognisable printed catalogue because it blamed weaker demand for it from consumers.
Ms Nickolds mentioned the retailer has reinvented elements of its enterprise through the years to be able to sustain with what clients need and instructed the PA news company it has stored sturdy assist in consequence.
“There are many customers who hold a lot of nostalgia for our catalogues and products like toys they bought from us years ago, but our ability to transform and keep relevance with customers is a really exciting thing to be a part of,” she mentioned.
“This industry doesn’t stand still so Argos hasn’t either. But if you look at data like our customer satisfaction figures it shows customers continue to have a very positive relationship with our brand.
“And for us, we really hope that future generations will also have that relationship with Argos.”
Changing client demand additionally noticed the enterprise reveal three years in the past that it deliberate to shut the vast majority of its standalone outlets because it shifted additional in the direction of towards websites inside supermarkets and its supply operation.
Sainsbury’s has mentioned it expects to have 160 standalone shops and between 430 and 460 Argos counters inside its supermarkets.
When requested whether or not modifications will assist Argos in opposition to the problem of trade titan Amazon, Ms Nickolds mentioned: “Everything we’ve been doing recently means we are very well-position to face that challenge.
“The breadth of our business gives us a unique position when it comes to next day delivery and collection across the country.”
Earlier this month, Sainsbury’s revealed that Argos gross sales grew by 5.1% over the 16 weeks to June 24, to drive progress in its normal merchandise arm.