Argos plots 'store of the future' as pressure from Amazon grows

Argos plans to devise a "digital retail store of the future" concept, as it seeks to ward off increasing pressure from Amazon.

Argos: we believe there's a better way to shop online by CHI & Partners
Argos: we believe there's a better way to shop online by CHI & Partners

The Home Retail Group-owned brand is set to hire a design agency to help it identify points of difference for its stores, as web giant Amazon spreads its distribution to the physical world by partnering with The Co-operative for collection lockers.

Argos posted a healthy like-for-like sales increase of 5.2% in the eight weeks to 2 March on the back of its popular click-and-collect offer.

The retailer claims internet-related sales now account for 43% of its sales, up from 40% a year ago, while mobile commerce sales grew 117% year on year.

However, Argos is keen to create a strong retail store offering in the face of aggressive expansion by Amazon, with one source saying there is a "crazy amount of pressure" on Argos to "get this right".

Argos' retail estate remains the backbone of its business, but it is reducing this estate and has shrunk its portfolio by 11 stores to a total of 737 for the year ending 2 March, as it seeks to adapt to the changing retail environment.

The retailer is already in the process of giving its stores a digital makeover by kitting out stores with web browsers and introducing Wi-Fi to allow customers to use mobile devices in-store.

It is also rolling out a fast-track collection service for goods purchased online or via mobile devices.

Become a member of Campaign from just £45 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content

Share

1 Why creative people have lost their way

What better way to kick off the inaugural issue of Campaign's monthly print offering than with another think piece on the current failings of our industry, written by an embittered, pretentious creative who misses "the way things used to be"...

Share

1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).