The hub has opened above an Argos store in Victoria and already has about 10 staff working at it. Argos is seeking to hire product managers, development managers, digital designers and testers.
Argos digital director Bertrand Bodson will remain based in the brand’s Milton Keynes headquarters, where the majority of the business's existing digitally-focused staff will remain based, but expects to spend about one day a week in the Victoria office.
Bodson, an ex-Amazon executive who joined Argos in the summer, said: "For us, this is about creating a space for collaboration and innovation.
"We want to unleash the entrepreneurial spirit I know to be at the heart of our business and which has meant that nearly 50% of our business now originates in a digital channel."
Setting up the digital hub comes as Argos seeks to integrate digital into the more traditional elements of its business.
Innovations include six concept stores that replace the traditional in-store catalogues with tablets, which hope to cut down the collection times of items down to less than 60 seconds.
Argos is also integrating Blippar’s augmented reality technology into catalogues to allow children at home to open up interactive contact within the catalogue using a mobile device.