Finally moving on from the 20th century catalogue, Argos is looking to become far more digitally focused in a move that will see 75 stores close or relocate to more viable locations.
According to The Guardian, the parent company of Argos, Home Retail Group, has announced that it will also be cutting back on its catalogue, which currently has a circulation in the region of 17 million. While this will undoubtedly save the firm a few pennies, chief executive at Home Retail, Terry Duddy, said that ultimately it planned to spend upwards of £300 million over the next three years to help grow the brand and regain some of its relevance.
Thanks to the growth of online retail, which Argos has failed to capitalise on, it’s been reported that a large number of the store’s outlets were making under £200 profit a week throughout 2012. This contributed to the drop in Home Retail profit by some 37 per cent, to £18 million – though this was pre-tax.
While many have welcomed the news that Argos will become more of an online prescence, it faces stiff competition in that arena from the likes of Amazon – companies that have been dominating in that market for well over a decade.
KitGuru Says: Do any of you guys use Argos for anything? I like to see it as a less strenuous IKEA. That said, I doubt I’d buy anything online from it.